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Financial Review's Article: Shell is also eyeing the Canning, through a potential tie-up with Buru Energy and BHP Billiton is said to be mulling a deal with Hess that would incorporate the US company’s Canning acreage


On my post above on Feb. 26, I was asking;

"I was thinking about Shell earlier today. I said there were questions here;

- Then, where is Shell now?

- Why isn't Shell interested in shale O&G business even though its CSG LNG partner PetroChina is already in?

- Is Shell going to be the late player?"


One day later, on Feb.27, an article from Financial Review was posted by Serendipity (thanks to him/her) on SXY “its just a matter of time” Thread - Click here. (Our good poster Speculator101 also posted the same article on Buru thread)

It was revealing that Shell is also eyeing the Canning, through a potential tie-up with Buru Energy and BHP Billiton is said to be mulling a deal with Hess that would incorporate the US company’s Canning acreage and potentially extend to its exploration in the Beetaloo Basin in the Northern Territory.

These are extraordinary movements if not rumuors. Shell is very conservative on entering in to the deals, but it has never been motionless or blind about seeing the opportunities. This is their job. They made a huge study the middle of Canning in mid 1990s, the location just above our wet-gas window.(Shell – Canning Basin project – SRK Report 1998 We have extensively studies this report made by SRK and we used many referances from that document here before). NSE was holding the tenements below since 1995 and was blocking Shell's action to do anything at the south)

That's why my eyes were searching for Shell! it's revealed exactly one day later after my post. Shell is there and looking for deals.

What about BHP?

It is interesting that Hess bought Kingsway Oil's prospects last year and now BHP is looking to make a JV with Hess. Those tenements just south of NSE's EP-450 and EP-451. It's all in dry-gas window.

See what BHP's petroleum boss Mike Yeager says on this article;

"BHP’s petroleum boss, Mike Yeager, has been public about his interest in the Canning, although pointed out that any significant shale play in Australia needs access to export markets to make it work. In the Canning that would be either James Price Point – if it goes ahead – or down a pipeline to Karratha. In the NT, the focus would be on the growing LNG export hub in Darwin."

Nearly all majors are trying to take a closer look, even looking for an empty seat in Canning, our NSE is delaying the things. They don't need money, they don't have any problem like diluting shares, so they are delaying everything.

That's stupid.

Look what buru MD Eric deos; he is trying to keep a low profile about resources while trying to increase the share price as much as possible by giving more importance to retail shaeholders. Because a takeove price will be a multiplying factor of the curretn share price.

What Sam Willis does not understand here is, we will be hit by a major for a takeover offer before we even reach to $1 if they go like this.

They have to change their policy.

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Here is the Fin. Review's article;

"Chevron’s surprise $US349 million farm-in to Beach Energy’s shale gas exploration venture in the Cooper Basin has loosened tongues about other similar deals said to be under discussion by some of the industry’s big names.

Unsurprisingly, the Cooper Basin, with its existing infrastructure, and Western Australia’s Canning Basin, with its high oil content, are the two areas of focus.

Over in the west, BHP Billiton is said to be mulling a deal with Hess that would incorporate the US company’s Canning acreage and potentially extend to its exploration in the Beetaloo Basin in the Northern Territory.

BHP’s petroleum boss, Mike Yeager, has been public about his interest in the Canning, although pointed out that any significant shale play in Australia needs access to export markets to make it work. In the Canning that would be either James Price Point – if it goes ahead – or down a pipeline to Karratha. In the NT, the focus would be on the growing LNG export hub in Darwin.

Others say Shell is also eyeing the Canning, through a potential tie-up with Buru Energy, which is already working with Mitsubishi but has said it would sell down its share to help with funding.

Further south in the Perth Basin, AWE has flagged it may look later this year again at a potential farm-out of its shale venture once more data from its drilling is to hand. That venture has also attracted some international players.

In the opportunities still available in the Cooper – through farm-outs in unconventional gas expected down the track at Senex Energy and Drillsearch Energy – all bets are on the majors and locals with stakes in the LNG export ventures in Gladstone.

However, as Chevron’s foray shows, new entrants can come out of left field.

Drillsearch already has a shale gas venture in the Cooper with the UK’s BG Group, but has other acreage still up for partnerships as long as BG’s 9.4 per cent holding of the register isn’t too much of a snag.

Meanwhile, closer to the LNG action in Gladstone are Senex’s coal seam gas assets in the Surat Basin which are up for sale or joint venture.

The increase in reserves and resources across Senex’s four CSG permits have now reached almost 600 petajoules, enough to provide a handy filip to those LNG ventures still looking to fill a shortfall in their supplies.

Senex has fielded several approaches on the assets so far but is now leaning toward running a formal process, without using an external adviser, later this year.

Some transaction – whether an asset sale, farm-down, joint venture, gas swap or gas supply contract – can be expected certainly by early next year."