re: Ann: COE acquires Gippsland Basin gas and... Just doing some...

re: Ann: COE acquires Gippsland Basin gas and... Just doing some further digging - wondering what COE are thinking here.

From Mar 2007 (yes 2007) BPT investor presentation:

BMG Development Plans - Gas

* 225PJ over 15 years will underwrite gas development capex (had a GSA with Alinta lined for this but subsequently defered FID on gas in favour of oil first)
* drill up to 3 wells in Manta and Gummy fields
* cost approx $500M with Gas Processing Facility (prob offshore) and Gas Pipeline to shore.


Big numbers (which probably got bigger in Capex but then sales gas price gone way up too). Could probably partner with APA for pipeline too.


By Sep 2007, BPT had sold a 10% interest (June 07) to Itochu Corporation of Japan for $123 million cash. Transaction gives BMG a project valuation in excess of $1.2 billion.

This pres shows the "reserves" (before the downgrade) and the oil development plan and that Gas development is off the table for now.

http://www.asx.com.au/asxpdf/20070905/pdf/314djn7qz7mtnq.pdf


By Dec 2, 2007, over 3 million bbls oil had been produced.


29th Feb, 2008 BPT sold a further 10% in BMG JV joint to Sojitz Energy Australia Pty Ltd for a total of $A123M. PR notes:

"The BMG project was developed to initially produce oil from the Basker and Manta fields, based on initial proved and probable (2P) reserves estimates of about 23 million barrels(MMbbl). But new wells drilled in 2006 expanded the reserves base with 2P oil reserves standing at nearly 40MMbbl (as at 30 June 2007), while an associated increase in the natural gas resource has nearly quadrupled estimates of the gas/condensate resource"


In July, 2008 a major expansion of BMG is planned
http://www.asx.com.au/asxpdf/20080707/pdf/31b1b9l1xwczxj.pdf

and by the end of July'08 had produced it 5 millionth bbl.


Along comes Aug'08 and a certified reserves update
BMG 2P RESERVES INCREASED TO 74.2 MMBOE
http://www.asx.com.au/asxpdf/20080819/pdf/31brxrmkr4cd7w.pdf

That release above is worth reviewing.



Fast forward to Feb 2010, the beginning of the Reserves revision (preliminary 2P downgrade 70-80% of remaining reserves) and lowered production. Future plans for oil development and gas development called into question

http://www.asx.com.au/asxpdf/20100203/pdf/31nhvy6f15rq10.pdf


Nov'10 the strategy shifts
http://www.asx.com.au/asxpdf/20101108/pdf/31tqsqxj5slfrm.pdf

"The Joint Venture will now focus on quantifying BMG’s existing gas and liquids resources, particularly the deeper Golden Beach formation, in addition to identifying potential additional resources."


And here we are.... wonder when COE present a plan for BMG.