Announcement
QUARTER: PPP: September 2009 Quarterly Activities Report - 30 Oct 2009
02:33pm
PPP
30/10/2009
QUARTER
REL: 1432 HRS Pan Pacific Petroleum NL
QUARTER: PPP: September 2009 Quarterly Activities Report - 30 Oct 2009
SEPTEMBER 2009 QUARTERLY ACTIVITIES REPORT
Tui Area Oil Project (PMP 38158) Taranaki Basin (PPP interest 10%)
Production from the Tui Area oil fields totaled 1.4 million barrels (PPP 0.14
million barrels) for the September quarter, averaging 15,359 barrels a day.
Cumulative field production to the end of September 2009 was 24.8 million
barrels (PPP share 2.48 million barrels). Operating revenue from Tui during
the quarter was US$11,964,360.
The Tui Area Joint Venture (JV) has secured the services of the
semi-submersible drilling rig Kan Tan IV to drill at least two near field
exploration wells, with the earliest spud date of February 2010 on the
current rig schedule. Drilling candidates are the Tui-NE and Tui-SE
prospects, potential eastern extensions to the Tui Field, and the Tui-SW
prospect, a possible southern field extension. The JV is continuing to
finalise evaluations. Successful discoveries would likely be developed by
low-cost tie-back to the existing Tui facilities.
Block 07/03 Vietnam
PPP's wholly owned subsidiary Pan Pacific Petroleum (Vietnam) entered into a
farmin agreement in May 2009 with Premier Oil Vietnam South B.V. ("Premier")
whereby PPPV had the right to earn a 15% interest in Block 07/03, offshore
Vietnam, subject to the waiver of pre-emptive rights by PetroVietnam and
Vietnamese Government approval.
PPPV has now been advised that PetroVietnam Exploration Production
Corporation Ltd (PVEP) intends to exercise the pre-emptive right on behalf of
PetroVietnam, and is considering the acquisition of part of the 15%
Participating Interest the subject of the PPPV farmin from Premier. A further
update will be provided when the details of the PVEP position are confirmed.
A second commitment exploration well is planned for Q4 2009.
New Ventures
Pan Pacific Petroleum (JPDA 06-103) Pty Ltd ("PPPJ") which is also wholly
owned by PPP agreed during the quarter to acquire a 15% Participating
Interest in the block covered by the JPDA 06-103 Production Sharing Contract
in the Bonaparte Basin by executing simultaneous 5% farmout agreements with
Global Energy Inc. (a wholly owned subsidiary of Videocon Industries Ltd) ,
Bharat PetroResources JPDA Ltd (a wholly owned Indian subsidiary of Bharat
PetroResources Limited which is a wholly owned subsidiary of Bharat Petroleum
Corporation Limited), and GSPC (JPDA) Ltd (a wholly owned Indian subsidiary
of Gujarat State Petroleum Corporation Limited).
The terms of the agreements include a partial refund of the farmout parties'
past costs and a contribution on their behalf to the costs of the first two
exploration wells planned to be drilled in JPDA 06-103 before January 31,
2010.
.
Upon completion of PPPJ's farmin obligations, the participating interests
will be;
Pan Pacific Petroleum (JPDA 06-103) Pty Ltd 15%
Oilex (JPDA 06-103) Ltd (Operator) 10%
Global Energy Inc 20%
GSPC (JPDA) Ltd 20%
Bharat PetroResources JPDA Limited 20%
Japan Energy E&P JPDA Pty Ltd 15%
PPPJ's farmin is subject to the approval of the assignment by the Autoridade
Nacional do Petr?leo of Timor Leste, the Designated Authority. All JV parties
have waived their pre-emptive rights in relation to all of the respective
farmouts.
JPDA 06-103 is located within the northern Bonaparte Basin, offshore
northwest Australia, within the joint petroleum development area (the "JPDA")
which is administered under the Timor Sea Treaty between Timor-Leste and
Australia. The contract area, which extends over 3700km2 is adjacent to
several existing oil fields such as Laminaria and Corallina and the recent
Kitan discovery; prospects similar to this successful oil play are believed
to exist in JPDA 06-103. The Operator reports that a portfolio of prospects
comprising over 20 structural closures has been identified in the block.
Drilling locations have been selected for the first two wells on the Lore and
Lolotoe prospects.
The semi-submersible drilling rig "Songa Mercur" has been contracted for a
two well drilling campaign in the JPDA 06-103 contract area, with the option
of one additional well, and is scheduled to mobilise for the JV, after
release from its current contract with Woodside Energy Ltd, anticipated to be
in late November 2009.
PEP 38483 Taranaki Basin (PPP interest 14.091%)
Evaluation of the shallow gas play has been completed, and this will now be
marketed as a farmin opportunity by the Operator (AWE) on behalf of the JV
partners.
WA-33R Carnarvon Basin (PPP interest 10%)
The WA Dept of Mines & Petroleum Departments will recommend to the Joint
Authority that the retention lease over the entire 4 graticular blocks of
WA-33-R be renewed. Approval is awaited.
Financial Highlights (unaudited)
Assets include: Cash held (refer cashflow) A$87.9m
Receivables for oil sales (gross) A$4.5m
Tui oil inventory (WMP share) 16,708.0 barrels
Liabilities include: Accrued royalty taxes
Accrued income taxes A$2.3m
A$0.7m
Consolidated Statement of Cash Flows (unaudited)
Year ended
(audited)
30/06/2009
$A'000 Year to date (unaudited)
30/09/2009
$A'000
Cash flows related to operating activities
Receipts from product sales and related debtors
109,529
12,818
Cash paid to suppliers and employees (24,272) (6,393)
Interest and other items of a similar nature received 4,319 563
Income taxes paid (50,026) (13,655)
Net operating cash flows 39,550 (6,667)
Cash flows related to investing activities
Payment for purchases of plant and equipment:
Proceeds from asset available for sale
(Payments)/refunds for:
(a) exploration and evaluation
(b) production
(c) development
(d) restoration (113)
396
(4,979)
(1,725)
-
(214) -
-
(8,345)
(509)
-
-
Redemption from cash collateralisation 5,161 406
Debt securities (bonds) (5,983) -
Net investing cash flows (7,457) (8,448)
Cash flows related to financing activities
Derivative premium paid
(237)
-
Dividends paid (17,838) -
Net financing cash flows (18,075) -
Net increase in cash held
14,018 (15,114)
Cash at beginning of year 81,078 106,645
Exchange rate adjustments 11,549 (3,604)
Cash at end of period
A$ 106,645
A$ 87,927
The above cash at end of period was held in the
following currency:
Australian Dollars
United States Dollars
New Zealand Dollars A$ 40,535
US$ 44,279
NZ$ 14,339 A$ 40,253
US$ 41,649
NZ$ 429
PPP is free of any debt. Cash at 30 September 2009 excludes cash deposited
A$6,498,000 (June 2009 A$7,488,000) in support of the Tui FPSO lease
contract.
Production & Reserves
Tui Area Fields (PPP 10%) Year ended 30/06/2009
MMbbls Period ended 30/09/2009
MMbbls
PPP total net production 0.91 0.14
PPP remaining net reserves 2.68 2.57
B Flatters-Wright
Company Secretary
31st October 2009
Notes:
1. References to PPP, and the company, are to be read as inclusive of
the subsidiary companies within the consolidated PPP group.
2. Where appropriate activities and events occurring after 30 September
2009 have been recorded in this report.
3. Except where otherwise stated, dollar amounts are in AUD currency
End CA:00187103 For:PPP Type:QUARTER Time:2009-10-30:14:33:01
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