ENERGY INDUSTRIES – AUSTRALIA

Woodside’s $4.6bn punt on LNG assets

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Original article by Paul Garvey
The Australian – Page: 26 : 17-Dec-14

Peter Coleman, CEO of Australian-listed energy group Woodside Petroleum, has announced the acquisition for $US3.75bn ($A4.6bn) combined of holdings in two LNG developments from US-based Apache Energy. Woodside will gain a 13% stake in the Wheatstone project offshore Western Australia (WA) and one of 50% in the Kitimat tenements in Canada. The deal will please investors who had been concerned at a lack of new growth assets for the company. At the same time it has, along with allies Royal Dutch Shell and BP, again postponed the roll-out of floating LNG technology at their Browse field off WA

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, APACHE ENERGY LIMITED, ROYAL DUTCH SHELL PLC, BP PLC, CHEVRON CORPORATION

Plunge claims its first scalp as Red Fork Energy goes under

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Original article by Paul Garvey
The Australian – Page: 19 : 12-Dec-14

Australian-listed oil and gas producer Red Fork Energy has become the first such business to succumb to the effects of the recent global crude oil price fall. Its stock had declined from $A0.38 in late 2013 to just $A0.006 in early December 2014. In mid-2013 the group sourced over $A47m in fresh capital at a price per share of $A0.43, and among the major stockholders to now suffer losses is Ellerston Capital with a stake of 10.9%. Red Fork, which has shale oil and gas assets in the US, cannot service its liabilities of $A100 with Guggenheim Partners

CORPORATES
RED FORK ENERGY LIMITED – ASX RFE, GUGGENHEIM PARTNERS LLC, ELLERSTON CAPITAL PTY LTD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, ASX LIMITED – ASX ASX

Power plant half shut as gas rises, demand falls

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Original article by Matt Chambers
The Australian – Page: 20 : 11-Dec-14

AGL Energy has advised that it will close down four of the eight generating units at its gas-fired Torrens Island power station in South Australia in 2017. The move has been attributed to factors such as the rising cost of gas for domestic consumption and a decline in energy use. AGL shut down the four older generating units for several months earlier in 2014 due to low demand for electricity

CORPORATES
AGL ENERGY LIMITED – ASX AGL, SANTOS LIMITED – ASX STO

Woodside’s Apache bid may kill Browse

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Original article by Paul Garvey
The Australian – Page: 20 : 10-Dec-14

Insiders claim that Australian-listed Woodside Petroleum has made a pitch to US partner Apache ­Energy, to acquire the latter’s 13% stake in the Wheatstone LNG development offshore Western Australia. The likely price tag is $US1.8bn ($A2.17bn), and other potential suitors appear to have abandoned their bids due to the recent decline of the crude oil price. If Woodside goes ahead, it may no longer want to pursue its stalled Browse LNG project. A floating LNG production platform has been proposed for it by Woodside and allies Royal Dutch Shell and BP

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, APACHE ENERGY LIMITED, ROYAL DUTCH SHELL PLC, BP PLC, TEMASEK HOLDINGS (PTE) LTD, HARBOUR ENERGY LIMITED, NOBLE GROUP LIMITED, EIG GLOBAL ENERGY PARTNERS, PAVILION ENERGY PTE LTD, ORBIS AUSTRALIA PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Santos slumps after rating downgrade

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 10-Dec-14

Investors have responded bearishly to a move by Standard & Poor’s to reduce the credit rating of Australian-listed Santos from "BBB+" to "BBB". Santos shares closed $A0.60 lower at $A7.70 on 9 December 2014, after reaching an intra-day low of $A7.46. The oil and gas producer has indicated that the ratings downgrade will have no impact on its finances, and notes that it has a healthy balance sheet

CORPORATES
SANTOS LIMITED – ASX STO, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, JP MORGAN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Oil slump drives Santos to hybrid

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 19 & 24 : 27-Nov-14

David Knox and Andrew Seaton, CEO and CFO respectively of energy group Santos, on 26 November 2014 told investors about plans to compensate for the recent decline in the crude oil price by some 30%. The company, which has LNG projects in Queensland and Papua New Guinea, will cut costs and capital investment. A previous estimate for annual cash flow to grow 100% between 2013 and 2016 has been revised down to 65%, and Seaton foreshadowed a potential hybrid debt issue worth EUR500m ($A726m). Santos shares closed $A0.15 higher at $A11.98, after a fall of 5% the day before

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, SENEX ENERGY LIMITED – ASX SXY, CREDIT SUISSE (AUSTRALIA) LIMITED, ORD MINNETT GROUP LIMITED, PAPUA NEW GUINEA LNG PROJECT, UBS HOLDINGS PTY LTD, TOTAL SA

Energy exports at risk as oil prices slump

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 27 : 26-Nov-14

The price of Brent crude oil is trading at $US0.7945 per barrel, having fallen to $US77.92 in mid-November 2014. David Hewitt of Credit Suisse notes that a number of market watchers are particularly bearish about the outlook for the crude oil price, with some warning that it could fall below $US60. He also says Australian-listed LNG producers would be adversely affected by continued weakness in the crude oil price, as the price of LNG is linked to the crude oil price

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, INTERNATIONAL MONETARY FUND, RBC CAPITAL MARKETS, REUTERS HOLDINGS PLC, LUPUS ALPHA COMMODITY INVESTMENT FUND, BLOOMBERG LP, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD

Nexus investors lash ASIC inaction

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Original article by Leo Shanahan
The Australian – Page: 23 : 20-Nov-14

Piper Alderman lawyer Amanda Banton, who represents investors in Nexus Energy opposed to its acquisition by Seven Group Holdings, has criticised the Australian Securities & Investments Commission. The watchdog has taken no action after Seven made a low offer of $A0.02 and then moved to buy the collapsed Nexus following the rejection by stockholders of the original bid. A major issue is the dual role of Don Voelte as Seven CEO and Nexus chair

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, NEXUS ENERGY LIMITED – ASX NXS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PIPER ALDERMAN, AZURE CAPITAL PTY LTD, LIBERAL PARTY OF AUSTRALIA, SUPREME COURT OF NEW SOUTH WALES

Shareholders target Voelte in Nexus bid

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Original article by Matt Chambers, Sharri Markson, Leo Shanahan
The Australian – Page: 23 : 12-Nov-14

Conglomerate Seven Group Holdings plans to take over Nexus Energy for $A180m, following the latter’s collapse after its board rejected an offer by Seven worth just $A0.02 a share. The fact that Seven CEO Don Voelte also had the role of chair at the gas group has sparked complaints by Nexus investors to the Australian Securities & Investments Commission. Legal action is being launched by stockholders such as Bechtel CEO Andrew Greig, ­Liberal Party president Richard Alston, Karoon Gas executive chair Bob Hosking and Michael Fowler, another ex-Nexus chair

CORPORATES
NEXUS ENERGY LIMITED – ASX NXS, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, KAROON GAS AUSTRALIA LIMITED – ASX KAR, BECHTEL PTY LTD, LIBERAL PARTY OF AUSTRALIA

Woodside mulls regasification to meet domestic obligation

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Original article by Paul Garvey
The Australian – Page: 19 : 10-Nov-14

The Western Australian (WA) Government currently imposes a domestic gas reservation policy on producers such as Woodside Petroleum and its joint venturers in the Browse floating LNG development. The companies are set to continue their lobbying effort against this, but are also preparing for the maintenance of the policy by considering a regasification plant in the South West region of WA. This would help them meet the mandated target of 15% of LNG output to be available to local users

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, BP PLC, PETROCHINA COMPANY LIMITED, MITSUBISHI CORPORATION, MITSUI AND COMPANY LIMITED, AGSO-GEOSCIENCE AUSTRALIA