The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Let's say BOQ loves golf. And, what might be the best golf course in the world, is just a 5 minute drive from your house. They said memberships are very reasonable, but the initiation fee is $60M. But, they also tell you that we may close the course and build homes. You say what the hell, you join. No one is going to build homes on maybe the best course in the world. But, guess what? They decided to build homes. Course is gone as well as your $60M. Good deal, eh?
On March 23rd, Santos announced a $550 million (38%) reduction in 2020 capital expenditure. Guess we could see this coming. I didn't dig out Origin's expected FY2021 capital expenditure numbers. That would start July 1 I believe. I would thing Santos would have a larger capital expenditure numbers than Origin. They did say they were still committed to Beeataloo in the 2nd half of the year.
Santos had an AGM on April 3rd. Looks like they are putting off any further work at Tanumbirini for a long while. COVID and cost cutting.
Last year, we expected to drill two exploration wells in the Northern Territory’s McArthur
Basin onshore shale gas province.
Unfortunately, a combination of weather and rig delays meant the program could not be
undertaken in 2019 and the cost-cutting measures we announced on 23 March mean that these
wells will now be delayed beyond 2020.
We were, however, able to conduct hydraulic fracture stimulation on our Tanumbirini-1 well and
confirm a successful gas discovery.
With the current public health crisis and the vulnerability of remote and Indigenous communities,
we plan to curtail further testing of this well and safely shut it in to avoid the movement of people
in and out of the area to help keep these communities healthy and safe.
https://www.santos.com/wp-content/uploads/2020/04/200403-2020-Santos-AGM-Addresses.pdf
cont...
The pipeline would transport gas and/or liquids.
The consultants would need to "conduct and record initial landowner discussions with regard to the position of the corridor within their property".
Lock the Gate Alliance said maps released with the tender show the pipeline would travel from Tennant Creek to a gas hub near Darwin where it could then be exported to Asian countries.
Arid Lands Environment Centre director Jimmy ****ing said it was a disturbing revelation at a time when gas fracking companies were indefinitely putting their operations in the NT on hold.
"It's bad enough the NT Government would spend public money propping up the fracking industry," he said.
Dan Robins from Protect Country Alliance in Darwin said it made no sense to be supporting an economically unviable industry.
"There is no sound reason for public money to be spent on gas infrastructure even when economic times are good, but to do so now is simply lunacy.
The NT Government has been approached today for comment.
https://www.katherinetimes.com.au/…/surprise-plans-for-a-g…/
Gunner's surprise plans for a gas pipeline to connect Beetaloo to Darwin
Details of a pipeline to bring onshore gas from the Beetaloo Basin to Darwin were disclosed today.
For many, the proposed pipeline is the missing piece of the puzzle needed for the establishment of an onshore gas industry in the NT.
The NT Government has advertised a tender, made public by the Lock the Gate Alliance today, for a pre-feasibility study for a pipeline "corridor" from Tennant Creek to Darwin.
The 100-metre wide corridor of the pipeline is proposed to closely follow the Stuart Highway and through Katherine and Pine Creek to reach Darwin.
Another gas pipeline between Tennant Creek and Mount Isa, a distance of 622km, was opened by Jemena in 2018.
At the time, then Minister for Resources and Northern Australia Matt Canavan said the $800 million pipeline linked NT's Amadeus Gas Pipeline to Queensland's Carpentaria Gas Pipeline.
With this latest move the Northern Gas Pipeline could be used to send any gas extracted by fracking from the Beetaloo Basin west to Tennant Creek and through this new pipeline to Darwin for either processing or direct export.
Several companies Origin Energy and Santos chief among them, are well advanced on their exploration of shale gas in the Beetaloo since the NT Government dropped a moratorium against the industry in April 2018.
Most experts believe there are huge reservoirs of gas which could be unlocked by fracking in the Beetaloo but the costs of extracting the gas from deep underground and sending it to the east coast could have made the industry unviable.
The closing date for tenders for this pre-feasibility study is tomorrow.
One of the jobs proposed for the consultants is to consider landowner arrangements where the pipeline is to be laid north to Darwin.
"This is aimed to provide clarity to the Gas Taskforce and Government for future decisions regarding acquisition of a corridor to transport gas from on shore reserves to existing and planned gas industry infrastructure," tender documents state.
cont...
This doesn't provide the full article, but it does show the proposed pipeline expansion on a map in blue.
https://outline.com/HymrP7
lol
United Airlines CEO is one that the 3 month gesture and he made $10.5M in 2018. Airlines could take a $113B loss as Covid-19 is nailing the industry. I hope the CEO can hang up his own coat now as his arm won't be tired from holding his paycheck.
https://www.salary.com/research/salary/benchmark/chief-executive-officer-salary
BO...your number is fictional.
On Sept 14th, 2016, Falcon released the NR stating they have finished drilling to 3173 meters and finished the horizontal stimulation. Said gas flows have started and would take a week or 2 to hit the surface.
https://falconoilandgas.com/pdf/Australia_Operations_Update_14_Sep_2016.pdf
On Sept 29th, they released the early results showing the flow rates. 15 days after the prior release.
https://falconoilandgas.com/pdf/Update_on_Hydraulic_Stimulation_of_Amungee_NW-1H.pdf
On October 12th, 2016, they made a Notification of Discovery. Flow rates increased as well.
https://falconoilandgas.com/pdf/Notification_of_Discovery_-_Amungee_NW-1H.pdf
On Feb 15th, 2017, FO release the PR stating the material gas resource. One of the reasons we are all here. :-)
https://falconoilandgas.com/pdf/Beetaloo_material_gas_resource.pdf
Now, looking for some feedback. Guessing we may have 10 days (ish) to go on the horizontal if all goes well. No pun intended. Then, wait a week or so for the gas to hit the surface as we only drilled to 60% or so of the prior drilling depth. So, could we get those promised initial early flow rates by the end of the month? After Santos made a notice of discovery on the vertical frac, could we see an early call on that too? Not saying waiting 2 weeks like in the past would be hard to wait for. Anyone have anything to add?
In the Northern Territory, there was a two-year holdup while an incoming Labor government imposed yet another moratorium. The Beetaloo Basin in the Territory is perhaps the most exciting of all as Australia’s most promising shale gas prospect. Its opening would potentially provide the territory — which has an excellent Asian-facing port — with the one thing it has lacked in trying to build more diverse industries: namely, affordable and assured energy. And affordable energy means more jobs.
While the federal government has been waiting for an outbreak of common sense among state and territory governments, we have not been sitting idle. Three years ago, the commonwealth established a gas export control regime. A recent review of that scheme found that it has helped cut spot gas prices by more than 40 per cent across three years.
Those price falls are starting to flow to households, too. The lower gas prices were among the biggest price falls in the most recent consumer price inflation index.
We are also looking at options for a nationwide gas reservation policy. We should ensure that Australian gas benefits Australian jobs and Australian industry first. We have enough gas to export to the world, but when the Beetaloo gas is developed it should support the creation of manufacturing jobs and industry in Darwin — not just in Beijing, Tokyo or Seoul.
This way, the development of Australian gas will help ordinary Australians get a high-paying job and provide for their families.
One of the pioneers of the US shale oil and gas revolution was Harold Hamm. Hamm grew up dirt-poor in Lexington, Oklahoma, the youngest of 13 children. He left school young and started his own water-hauling trucking business to serve the fledgling fracking crews of the 1960s. There he learned the oil business and saved up enough money to buy his own oil wells. He never went to college but bought himself a library full of books on geology. He is now worth more than $12bn.
In 2011, he was invited to the White House after donating the bulk of his wealth to the Giving Pledge. There he explained to then president Barack Obama that there was a revolution occurring in the oil and gas industry.
ÂApparently, the president was not impressed and argued that green energy was the future.
That revolution is transpiring regardless.
In Australia, we should develop our gas resources — partly Âbecause doing so can reduce our carbon dioxide emissions, but the main reason we should do it is Âbecause it gives people from poorer backgrounds — such as Hamm — a go.
Matt Canavan is a Nationals senator for Queensland and the former minister for resources and northern Australia.
https://www.theaustralian.com.au/commentary/shale-be-right-why-fracking-is-the-answer-to-all-our-energy-woes/news-story/f43eabaf0b9ef23cf3c7234448b85433