Harriet JV junior partner Tap Oil declared force majeure in December 2006, saying that following "adverse developments" at several exploration and development wells at Harriet, it could not guarantee contracted gas supplies.
But in Burrup Holdings' initial public offering prospectus, released yesterday, executive chairman Pankaj Oswal says Harriet operator Apache Energy has guaranteed it will meet any supply shortfalls until 2030. What's more the gas has been bought at prices of about $US1.60 per gigajoule rather than the roughly $US9.00/GJ price that has been prevailing in WA recently.
While the Harriet gas reserves are steadily depleting, Apache has had a string of exploration successes along the Julimar trend in the offshore Carnarvon Basin and is planning more near-field and wildcat exploration in Western Australian waters.
Burrup has also been lobbying for development of Chevron's West Tryal Rocks gas field. This field's high levels of nitrogen would make it well suited for ammonia production and Chevron is believed to now be moving to develop the field for the domestic gas market, though it is unclear with what possible buyers the US major is negotiating.
Burrup Holdings' IPO is expected to raise between $390 million and $502 million, based on an indicative share price range of $1.75 to $2.25.
This will see the company valued at between $1.9 and $2.5 billion, including net debt of about $390 million.
About a third of the 223.1 million shares on offer are expected to be sold to retail shareholders; the rest will go to institutional investors.
The retail offer opens next Tuesday and closes on June 13. It will be followed by an institutional book build from June 16 to June 17. Normal trading of the shares is slated to start on the ASX on June 26.
