Chevron pulls out of unconventional gas in Cooper Basin

Read these three articles on Chevron withdrawing from unconventional gas exploration in Cooper Basin.

Chevron pulls out of Aussie shale exploration

By Sara Stefanini

Posted 27 March 2015 13:16 GMT

Chevron has pulled out of Beach Energy’s unconventional gas acreage in central Australia, just two years after the United States major made a splash by joining the project in a $349 million deal.

Australian independent Beach Energy, which owns the majority stake in the acreage, announced on Friday that Chevron had chosen not to participate in the second stage of the Nappamerri Trough exploration programme in the Cooper Basin.

“Chevron informed us that extensive technical evaluation has confirmed a large gas resource and potential for further appraisal,” Beach said. “However, at this time the opportunity does not align itself strategically with Chevron’s global exploration and development portfolio.”

Chevron’s 30% stakes in petroleum exploration licences 33 to 49 in the South Australian (SA) section of the basin, and its 18% stake in authority to prospect licence 855 in the Queensland section, will therefore be returned to Beach. Beach will fully own the SA licences and share the Queensland permit with Icon Energy, which has a 35.1% share. Read more at http://interfaxenergy.com/gasdaily/article/15669/chevron-pulls-out-of-aussie-shale-exploration

Chevron exits Cooper basin unconventional gas project

MELBOURNE, Mar. 30 2015 By Rick Wilkinson

OGJ Correspondent

Chevron Corp. has pulled out of the Nappameri Trough unconventional gas project in the Cooper basin, leaving other joint venture partners Beach Energy Ltd. and Icon Energy Ltd. to go it alone.

Chevron’s move comes despite confirmation of a large gas resource strategically placed near the hub of the Australian east coast gas pipeline transmission network.

Chevron believes that the onshore Cooper basin no longer aligns strategically with the company’s global exploration and development portfolio, particularly as the exploration budget has been slashed for its worldwide operations.

There is some justification in that Chevron has access to trillions of cubic feet of natural gas offshore Western Australia in the North West Shelf, Gorgon-Jansz and Wheatstone projects from where it can easily target major international LNG buyers. The move comes hard on the heels of Chevron’s announcement to quit its 50% interest in the Caltex downstream holdings in Australia (OGJ Online, Mar. 27, 2015).  The exit means that Beach and Icon now must find a new partner, or go it alone. In any event there is likely to be a slowdown of the Nappamerri Trough work program to a level that better matches current market conditions. Beach now reverts to 100% interest in PRL’s 33-49 in South Australia and 64.9% in ATP 855 in Queensland with Icon holding the balance of 35.1% in that block.

Read more at http://www.ogj.com/articles/2015/03/chevron-exits-cooper-basin-unconventional-gas-project.html

Chevron withdraws from ATP 855

Icon Energy Limited (ASX:ICN, “Icon”) wish to advise that Chevron Exploration Australia 1 Pty Ltd (“Chevron”) will not participate in Stage 2 in ATP 855 in Queensland.

The equity interests in ATP 855 following the Stage 2 decision will be, Icon 35.1% (unchanged) and Beach Energy 64.9% (Operator) (ASX:BPT, “Beach”).

Chevron advised Icon that extensive technical evaluation has confirmed a large gas resource and the potential for further appraisal and development, however, at this time the opportunity does not align strategically with Chevron’s global exploration and development portfolio. Stage 1 achieved all the exploration and technical objectives that were set by the Joint Venture partners.

Icon Energy Managing Director, Mr Ray James said, since the decline in oil prices the exploration industry has been operating in a capital constrained environment and I wish to thank Chevron and their unconventional natural gas group for their contribution to the Joint Venture in ATP 855.