BPH Chart, page-396

Here it is mummas11

ASSET Energy has begun discussions with drilling contractors and other local oil and gas operators about the potential of hiring a rig for a well to be spudded in offshore NSW permit PEP-11.

The company and JV partner Bounty Oil & Gas are hoping they may receive approvals to drill the proposed Seablue-1 well on the Baleen prospect in 2024.

Asset Energy recently reported that it continues to progress joint venture applications for the variation and suspension of work programme conditions and related an extension of PEP-11.

This application follows on from the quashing by the Federal Court of Australia of a decision by the previous Commonwealth-NSW Joint Authority to refuse the JV's application.

Since then, Asset has provided additional updated information to the Commonwealth-NSW Joint Authority and Title authority (NOPTA) in relation to its applications in the hope of progressing its proposed drilling campaign.

Asset said it is taking the opportunity to investigate the availability of a mobile offshore drilling unit to drill Seablue-1 while the applications for the variation and suspension of work programme conditions and related extension of PEP-11 are being considered by NOPTA.

Asset is planning to undertake exploration drilling for natural gas and greenhouse gas storage at the Seablue-1 well site, located in PEP-11, approximately 30 km south-east of Newcastle in Commonwealth waters, in a water depth of 125 m. The PEP-11 operation is forecast to take approximately 35 days to complete.

Asset is operator and holds an 85% interest in PEP-11, with the remaining 15% held by Bounty Oil and Gas NL.

ACCC report highlights NSW gas needs

In support of their argument and their application to drill in PEP-11, Advent and Bounty have been buoyed by recent statements from the Australian Competition & Consumer Commission (ACCC).

They pointed to analysis contained in the recent ACC Commission Gas inquiry 2017- 2030 interim report which emphasised that from 2026 there will be a material shortfall of supply in gas in the Australian east coast gas market.

"From 2026 onwards the east coast gas market is expected to experience a shortfall in supply from [proved and probable (2P)] reserves unless additional supply comes online. Under a Step Change scenario for gas demand [which models a steep decline in gas demand], the shortfall may be deferred until 2027. However, in the long-term there is not expected to be sufficient gas production from 2P reserves to meet demand....

[G]..... as demand is expected to decline over the longer-term through a shift to greater electrification and as energy policy shifts towards net-zero emissions targets. However, natural gas will likely be part of the transition between coal power generation and renewable energy sources, and there will be ongoing need for gas from commercial and industrial users in particular," the report found.

Wind opportunities

PEP-11 is located in the vicinity of the recently designated offshore wind project area off the Hunter Region of NSW, which has become Australia's second official offshore wind energy zone.

Asset has reviewed technical information related to PEP-11 and suggested that the declared wind area does not materially impact the PEP-11 title or the main PEP 11 target areas.

However, the Asset and Bounty have welcomed the declaration as they believe it reinforces their belief that decarbonising the global energy system will require the use of a mixture of technologies encompassing renewable energy resources, carbon sequestration and natural gas.

Advent has already held preliminary discussions to explore synergies with one of the wind technology companies who are planning to tender for and develop part of the declared area and has scheduled further consultation.