Origin Boosts Total 2P Reserves by 13%

- Origin Boosts Total 2P Reserves by 13%

Friday, July 29, 2011
Origin Energy Ltd.

Origin announced record annual production and sales revenues for its Exploration and Production business, released in the company's Production Report for the quarter to June 30, 2011.

This follows the release yesterday of Origin's 2011 Annual Reserves Report, in which the company announced a 13 percent annual increase in total Proved plus Probable (2P) reserves.

Origin Executive Director, Finance and Strategy, Ms. Karen Moses, said, "The Exploration and Production business has delivered record annual production of 135 Petajoules equivalent (PJe), up 30 percent on the prior year. Sales revenues also increased to a record $835 million, an increase of 32 percent on the prior year.

"The strong performance was driven by a 36 percent increase in production from Australia Pacific LNG as gas was supplied into major new contracts, higher production from Origin's increased share of Otway, a full year's contribution from Kupe and higher production from BassGas after an extended shutdown in 2009/2010.

"Notably, the record increases were achieved amid a challenging operating environment with extreme weather conditions impacting a number of our assets.

"Origin also reported a 13 percent annual increase in 2P reserves to 7,041 PJe, driven by increases in our CSG reserves held through Australia Pacific LNG and in the Ironbark area," Ms. Moses said.

During the year, Australia Pacific LNG made significant progress on its CSG to LNG project, culminating with a Final Investment Decision announced on July 28, 2011. The decision initiates development of the first LNG train and infrastructure to support a second train, and is underpinned by a sale and purchase agreement with Sinopec for the supply of 4.3 million tonnes per annum of LNG. Sinopec has also subscribed for a 15% equity interest in Australia Pacific LNG1.

"The Final Investment Decision on the first phase of the Australia Pacific LNG project marks the commencement of one of Australia’s largest LNG export projects," Ms. Moses said.

"Australia Pacific LNG holds Australia's largest 2P CSG reserves, including extensive acreage within the premier production fairways providing high quality gas resources with high deliverability," Ms. Moses said.

Production for the quarter to 30 June 2011 was 37 PJe, or 23 percent, higher than the June Quarter in 2010, with all asset areas either increasing production or maintaining production at comparable levels. Most notably, Otway increased production by 49 percent. Total sales volumes and revenues increased by 8 percent and 11 percent respectively.

Compared with the March Quarter 2011, production was 28 percent higher, as Otway returned to higher production levels and CSG and Cooper Basin production increased after the floods experienced earlier in the year. Sales volumes and revenues were 19 percent and 14 percent higher respectively, reflecting the increased production.

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AWE Updates 2P Reserves at Tui Area Oil Fields

- AWE Updates 2P Reserves at Tui Area Oil Fields

Monday, July 25, 2011
New Zealand O&G Ltd.

AWE, as Operator of the Tui Joint Venture, has advised that preliminary work completed on the Tui Area Oil Fields indicates that the gross initial developed 2P reserves recoverable from the existing four well development of the fields will be reduced from the previously reported 50.5 million barrels to between 40 and 42 million barrels. This would leave gross remaining developed 2P reserves as at June 30, 2011 of between 9 and 11 million barrels and would represent a reduction of between 1.1 to 1.3 million barrels net to NZOG. An independent review of the reserves estimate is being undertaken by RPS Energy Pty Ltd (RPS). The RPS review is anticipated by AWE to be completed in early August 2011. A finalized 2P reserves estimate will be advised after the Joint Venture and RPS review has been completed.

AWE's evaluation has also identified possible additional volumes of oil not accessed by the current production wells in the Tui fields. To recover this oil additional wells or side tracks of existing wells will be required. Further work is being progressed that may mature these opportunities into a firm project that would add back a portion of the reserves reduction.

The revised 2P reserves estimate indicates an economic cut‐off for production in the 2019 to 2020 period based on operating costs for the FPSO Umuroa, the oil price forecast at that time, and no future infill drilling or exploration drilling success.

Concurrently, reprocessing and reinterpretation of the Tui 3D seismic undertaken by AWE has identified exploration prospects adjacent to the Tui fields which are under ongoing evaluation.

Participating interests in the Tui Joint Venture are:

• AWE Limited (Operator) 42.5%
• Mitsui E&P Australia Pty Limited 35.0%
• Stewart Petroleum Co Limited (NZOG) 12.5%
• WM Petroleum Limited (PPP) 10.0%

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Bow Boosts 2P Certified Reserves by 60%

- Bow Boosts 2P Certified Reserves by 60%

Tuesday, July 19, 2011
Bow Energy Ltd.

Bow has obtained further 2P certified reserves in the Blackwater CSG Field (ATP 1025P) increasing Bow's total certified reserves to 238 PJ of 2P and 2,752 PJ of 3P reserves.

As previously announced Bow has reached an agreement to share exploration and production data with a number of CSG companies operating in the Bowen Basin. This has allowed data on adjacent Exploration Permits and Petroleum Leases to be extrapolated across permit and or lease boundaries. Based on the data from pilot production wells adjacent to Bow's Blackwater CSG field, along with Bow's previous core hole data, MHA Petroleum Consultants, Inc (MHA) have certified within the Rangal coal measures of Bow's Blackwater field (ATP 1025P) a further 89 PJ of 2P and 13 PJ of 3P. Several pilot production programs are in progress at Blackwater with 10 wells in various stages of dewatering. The aim of these programs is to test different well design and completion techniques to determine the optimal commercial production methods.

CEO, John De Stefani commented, "the new gas reserves at Blackwater follow on from our previous announcement regarding the recognition of the initial reserves at Norwich Park and are a further step towards achieving our goal from the current funded work programs of 1,250PJ 2P and 6,200PJ 3P reserves. Pilot programs are continuing on the Blackwater CSG Field with a series of pilot wells aimed at obtaining further reserve upgrades."

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PetroNeft Confirms 2P Reserves in Western Siberia

- PetroNeft Confirms 2P Reserves in Western Siberi

Wednesday, July 06, 2011
PetroNeft Resources plc

PetroNeft, owner and operator of Licenses 61 and 67, Tomsk Oblast, Russian Federation, provide an update on its operations.

Highlights

• Kondrashevskoye No. 2 sidetrack well confirms 2P reserves
• Lineynoye 206 contains thickest oil pay encountered to date
• Lineynoye/West Lineynoye has materially thicker pay and extends significantly further north than originally anticipated
• Several new oil bearing structures are now likely to the north of Lineynoye/West Lineynoye

License 61 Exploration/Delineation program

The Kondrashevskoye No. 2 sidetrack has been drilled down dip from the Kondrashevskoye No. 2 well and penetrated the oil water contact in the objective J1-1 sandstone interval at -2,465 m true vertical depth ("TVD"). The reservoir interval of 3 meters in the sidetrack section was slightly thicker than in the vertical well with the top meter of the reservoir oil bearing.

Based on the results, the well has most likely confirmed the existing independent Ryder Scott 2P reserves of 8.1 mmbo attributed to the field and we will now update the reserves with the Russian State Reserve committee in preparation for field development. The exact timing of development will depend upon how the economics of this field compares with other nearby fields, most notably Arbuzovskoye.

Production casing has been run and cemented in the well so it can be used when the field is developed. The drilling crew is in the process of moving to the potentially high impact Sibkrayevskaya exploration prospect which will commence drilling shortly.

License 61 Development program

The Lineynoye 206 development well drilled from Pad 2 to the north contained 21.9 meters of gross sandstone with 18.5 meters of net pay which is the thickest net pay interval encountered to date in the drilling program. The reservoir interval was completely saturated with oil and confirmed an oil-down-to of -2,437.5 m TVD, some 15 meters deeper than the previously mapped structural spill point of the field to the north.

The results of this and other recent Pad 2 wells have shown that the northern part of the Lineynoye field has materially thicker pay and extends significantly further north than originally anticipated. This has positive implications for reserves and productivity in this region of the field and for the likelihood of several new structures north of Lineynoye/West Lineynoye to be oil bearing.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented, "We are pleased to have proved reserves for economic development at Kondrashevskoye and will incorporate this discovery along with Arbuzovskoye in our 2012 development planning. Pad 2 drilling continues to be very encouraging with the thickest oil pay encountered yet indicating an increased probability that oil has migrated north from the Lineynoye/West Lineynoye field into the various structures contained in the undeveloped Emtorskaya High area."

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