GAS INDUSTRY – AUSTRALIA

Policy uncertainty hits oil and gas juniors

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 17 & 18 : 16-Apr-18

Fund managers argue that the share prices of smaller oil and gas producers are underperforming due to lack of certainty regarding energy policy in Australia. They say the positive outlook for east coast gas prices is not being reflected in share prices in the sector, which is expected to experience a supply deficit in coming years. Cooper Energy MD David Maxwell says there is strong evidence to suggest that east coast gas prices will remain at elevated levels for some time.

CORPORATES
COOPER ENERGY LIMITED – ASX COE, FLINDERS ASSET MANAGEMENT PTY LTD, BEACH ENERGY LIMITED – ASX BPT, LATTICE ENERGY LIMITED, SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, AWE LIMITED – ASX AWE, MITSUI AND COMPANY LIMITED, TAYLOR COLLISON LIMITED

Mineral Resources in scrip offer for AWE

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 19 : 12-Dec-17

Shares in Mineral Resources closed eight per cent lower at $A16.39 on 11 December after it launched a $A510m takeover bid for AWE Limited. The scrip bid was initially pitched at $A0.80 per share, but the downturn in Mineral Resources’ stock reduced the value of its bid to $A0.73, in line with the rival bid from China Energy Reserve & Chemical Group. Mineral Resources MD Chris Ellison says AWE’s stake in the Waitsia gas field is of primary interest to his company, both to supply its own operations and Western Australian gas users.

CORPORATES
AWE LIMITED – ASX AWE, MINERAL RESOURCES LIHIR PTY LTD, CHINA ENERGY RESERVE AND CHEMICAL GROUP, ORIGIN ENERGY LIMITED – ASX ORG, LATTICE ENERGY LIMITED, BEACH ENERGY LIMITED – ASX BPT, SHA ENERGY, QUADRANT ENERGY PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL

Suitor plots east coast for AWE’s gas

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 11-Dec-17

Kevin Gao, the Australian business manager of China Energy Reserve & Chemicals Group, stresses that supplying the Western Australian gas market will be the Chinese group’s priority if its takeover bid for AWE Limited succeeds. He has downplayed concerns that CERCG aims to primarily supply the Chinese market via its $A463m hostile bid. Gao adds that gas from the Waitsia gas field in the Perth Basin could potentially be shipped to Australia’s east coast if supply is surplus to demand in WA. CERCG is offering $A0.73 per share for AWE.

CORPORATES
AWE LIMITED – ASX AWE, CHINA ENERGY RESERVE AND CHEMICAL GROUP, UBS HOLDINGS PTY LTD, HIGHBURY PARTNERSHIP PTY LTD, ARGONAUT SECURITIES PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Gas supply at mercy of low Bass Strait fields

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 9 : 24-Nov-17

The Bass Strait gas fields are likely to start running out of gas in the medium term, according to a report to be released by the Department of ­Industry, Innovation and ­Science on 24 November. The report states the fields could start to run out even sooner if production is boosted in an effort to meet any rise in demand or deficit in supply. It notes that production in Bass Strait will increasingly move from shallow gas fields of high volume and quality to deeper fields of low volume and low quality. Federal Resources Minister Matt Canavan says the report demonstrates the need for states to lift their bans and moratoriums on on-shore gas exploration and development as soon as possible.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

States to whack back over GST gas threat

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 5-Oct-17

The issue of anti-terrorism measures will be the focus of the Council of Australian Governments meeting on 5 October. However, New South Wales Premier Gladys Berejiklian intends to raise a number of issues, including the Federal Government’s proposal to reduce the share of goods and service tax revenue paid to states that maintain restrictions on gas exploration and production. Meanwhile, Victorian Premier Daniel Andrew continues to advocate the introduction of a domestic gas reserve, arguing that only gas that is surplus to households’ and businesses’ requirements should be exported.

CORPORATES
COUNCIL OF AUSTRALIAN GOVERNMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, VICTORIA. DEPT OF PREMIER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Beach bulks up with $1.6bn Lattice deal

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 19 & 22 : 29-Sep-17

Beach Energy’s oil and gas production will be increased by about 150 per cent as a result of its deal to acquire the Lattice Energy assets of Origin Energy. Beach will significantly increase its debt to finance the $A1.585bn acquisition of the conventional oil and gas assets, but MD Matt Kay is confident that the company will be net cash positive by 2021. Origin had been weighing up both an IPO and trade sale of Lattice Energy, and CEO Frank Calabria says an IPO had remained under consideration until the deal with Beach was finalised.

CORPORATES
BEACH ENERGY LIMITED – ASX BPT, ORIGIN ENERGY LIMITED – ASX ORG, LATTICE ENERGY LIMITED, RBC CAPITAL (AUSTRALIA) LIMITED, WOOD MACKENZIE, SEVEN GROUP HOLDINGS LIMITED – ASX SVW

Morrison’s GST threat to boost gas

roymorgansocial Leave a comment

Original article by David Uren, Andrew Burrell, Matt Condon, Emily Ritchie
The Australian – Page: 1 & 4 : 29-Jun-17

Treasurer Scott Morrison says the Productivity Commission’s review of the formula for distributing goods and services tax revenue will take into account state-based bans and restrictions on gas exploration. He says it is not fair that states which are open to gas exploration and production receive a lower share of GST revenue than those which ban exploration. The Federal Government has argued that restrictions on gas exploration in some states and territories is contributing to the shortage of gas for domestic consumption.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, VICTORIA. DEPT OF TREASURY AND FINANCE

Gas explorers respond to PM’s demands

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 17 : 6-Jun-17

New data shows that Australian gas producers spent $A118.5m on onshore gas exploration during the March 2017 quarter, which is 20 per cent higher than previously. However, expenditure on offshore oil and gas ­exploration fell to $A221.8m, which is the lowest level since late 2005. Spending on mineral exploration rose to its highest level in two years, although the gold sector’s expenditure fell by nearly 15 per cent.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, ROYAL DUTCH SHELL PLC, PETROCHINA COMPANY LIMITED, QUEENSLAND GAS COMPANY LIMITED, WORLEYPARSONS LIMITED – ASX WOR, AGL ENERGY LIMITED – ASX AGL

Analysts cool on Origin’s petroleum plan

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 8-Dec-16

Ben Wilson of RBC Capital Markets has questioned Origin Energy’s lack of information regarding the proposal to spin off its conventional oil and gas assets. However, he notes that the partial demerger will reduce Origin’s debt and the company’s complexity, and adds that Origin could eventually also offload its stake in the Australia Pacific LNG project. Mark Samter of Credit Suisse says the demerger has merits, but he believes that Origin should have pursued a trade sale rather than an IPO.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, RBC CAPITAL MARKETS, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA PACIFIC LNG LIMITED, JP MORGAN AUSTRALIA LIMITED, BEACH ENERGY LIMITED – ASX BPT, CITIGROUP PTY LTD

Origin Energy spins off oil and gas business

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 7-Dec-16

Australian-listed Origin Energy has revealed plans for a partial demerger in 2017, with its conventional oil and gas assets to be held by a separately listed company. However, Origin will retain its stake in the Australia Pacific LNG project in Queensland, while it will not hold a stake in the new company. Origin CEO Frank Calabria says an IPO was deemed to offer the best value, although he adds that the group would be open to an offer that represented better value than a float. JP Morgan estimates that the assets that will be spun off are worth around $A1.8bn.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, JP MORGAN AUSTRALIA LIMITED, SANDON CAPITAL INVESTMENTS LIMITED – ASX SNC, TATTS GROUP LIMITED – ASX TTS, ILUKA RESOURCES LIMITED – ASX ILU, MACQUARIE CAPITAL PTY LTD, UBS HOLDINGS PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, AGL ENERGY LIMITED – ASX AGL, BEACH ENERGY LIMITED – ASX BPT, STANDARD AND POOR’S FINANCIAL SERVICES LLC, MOODY’S INVESTORS SERVICE INCORPORATED