Roc Oil chief executive John Doran said the budget increase – due to industry-wide cost pressures – should not alarm investors because the costs were “not material” and consideration should be given to the hike in world oil prices, which have doubled since the field was discovered in 2001.

With production to start in the first quarter of 2006, the new estimate is in excess of the potential 10% rise in costs to US$687.5 million – due to extra drilling – that Woodside warned of in April.

Meanwhile, Woodside’s A$5 billion Pluto LNG Project in Western Australia has been granted Major Project Facilitation status, federal industry minister Ian MacFarlane announced this week. The project involves the development of the Pluto gas field, located off the north-west coast of Western Australia and the construction of a new onshore LNG facility in the Pilbara region.

Also in Australia, Geodynamics has upgraded the reservoir at its Habanero project from the previously estimated several million cubic feet to 11 million cubic feet. "This is considerably higher than achieved elsewhere in hot fractured rock projects around the world," managing director Bertus de Graaf said. De Graaf, said depending on circulation test results, the upgrade justified developing a small demonstration plant.

The news wasn’t so good for Bounty Oil & Gas this week, which will plug and abandon the Utopia-5 well, after turning up 18 barrels of water and no oil. The joint venture partners will now review the proposed site of Utopia-6, which was expected to be spudded on 9 September.

Meanwhile, Rawson Resources’ IPO has raised A$4 million and the company will move swiftly to conclude an ASX listing and farmin to Surat Basin permit ATP 552 and the western portion of Cooper Basin lease PEL 107. The capital raising satisfies the contractual requirements with Great Artesian Oil & Gas (GOG) and Beach Petroleum for Rawson to farmin to the western portion of PEL 107 in the Cooper Basin. Drilling is due to start early next year.

Same basin, different state – Sundance Energy is looking to farm out three oil and gas exploration blocks in the Cooper and Eronmanga basins, south-west Queensland. With its stakes ranging from 90 to 100%, Sundance is looking for a farminee operator to earn up to 60% interest in the licences – ATP 616P, 636P and 661P – with formal exploration permits to be granted upon completion of the almost finalised Native Title negotiation.

In Victoria, drilling started yesterday on the Patrobus-1 well in PEP 155 in the Gippsland Basin. The partners aim to test whether oil known to be spilling from offshore oil and gas fields has migrated to the onshore Marlo area, said operator Lakes Oil.

In the US, Antares Energy is moving to earn a 25% working interest in a Wharton County, Texas gas prospect, that it says could have a combined reserve potential of 85 billion cubic feet in two lower Wilcox sands. The company has agreed in principle to fund US$875,000 of the $3.5 million project and drilling is expected in the next two months.

Antares is also feeling the benefits of selling its Turkish interests to concentrate on US projects. The A$53.9 million sale of its Turkish assets last month to Zorlu Energy produced a surge in Antares’ share price which spiked at over 70 cents in the days following the sale.

Also in the US, Amadeus Energy is predicting a bright future into 2006. Total assets have rocketed to $46 million, up from $18 million in 2003, while share prices have doubled in the last year from 45 cents to 90 cents.

Meanwhile in Indonesia, ASX-listed junior, Cooper Energy, says its latest overseas venture is its "most significant international acquisition to date". The company has acquired 50% of South Madura Exploration Pte Ltd, which holds 90% of the South Madura Production Sharing Contract (PSC). The PSC is a high-potential onshore block covering the south of Madura Island, Indonesia, which is surrounded by several major oil and gas fields in the East Java Basin, according to COE.

In the UK North Sea, Elixir Petroleum has won stakes in six licences in Britain’s 23rd Seaward Licensing Round. The distribution of licences has allowed Elixir to consolidate its position in the central North Sea and secure its first licence interests in the gas basin of the southern North Sea, said managing director Russel Langusch.

This latest UK licencing round has also seen Perth-based juniors Nido Petroleum and Norwest Energy pick up blocks. Norwest and Nido have picked up two blocks in a 50/50 partnership with each other in the southern UK North Sea Gas Basin as part of the UK government's 23rd licensing round. In addition, Nido has also been awarded three blocks in the northern North Sea, Inner Moray Firth.

In New Zealand, NGC says open access regimes for gas pipelines is one of the most significant issues facing the New Zealand energy industry. NGC gas processing and transmission manager Michael Cummings told the Gas Industry Reform Conference in Wellington yesterday that it was vital the industry made a smooth transition to the post-Maui gas market.

Also in New Zealand, Genesis Energy and Contact energy are moving ahead with plans for an LNG import terminal in case local E&P cannot meet the country’s energy needs.