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RCO, ROYALCO RESOURCES LIMITED
dr_dazmo
post Posted: Oct 9 2017, 02:39 PM
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From BHP Annual Report (apologies for any formatting issues).

Cheers
Dr_Dazmo

Key developments during FY2017

Bass Strait Longford Gas Conditioning The Longford Gas Conditioning Plant (LGCP) Project was approved by the Board in December 2012 to allow the production of Turrumreserves and the production of Kipper and other undeveloped high carbon dioxide content hydrocarbons. The facility is designed to process around 400 million cubic feet per day (MMcf/d) of high carbon dioxide gas. The project was completed and first gas production occurred in FY2017, with maximum rates achieved in March 2017. Our share of development costs is approximately US$520 million, of which US$505 million was incurred as of 30 June 2017.

Bass Strait Kipper gas field development TThe Kipper gas field began production in FY2017 following the completion of the Longford Gas Conditioning Plant. Funding for the ninstallation of mercury treatment facilities was approved in March 2014, with completion in FY2017. The project included two new subsea wells, three new pipelines and platform modifications to supply 3,000 barrels per day (Mbbl/d) of condensate and 80 MMcf/d of gas.
Bass Strait Turrum field development The Turrum field development is located 42 kilometres offshore in about 60 metres of water and operates under the Gippsland Basin Joint Venture. The Turrum field has a capacity of 10 Mbbl/d of oil and 200 MMcf/d of gas. Initial production of low carbon dioxide gas through the Turrum facilities occurred in June 2013. High carbon dioxide gas production from the Turrum reservoir has come online with completion of the Longford Gas Conditioning Plant in FY2017.



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Always remember the Golden Rule - Those with the Gold make the Rules!
 
nipper
post Posted: Oct 3 2017, 07:05 AM
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QUOTE
ExxonMobil has declared itself back in the hunt for Bass Strait gas, announcing two planned exploration wells at its big Dory prospect on the continental shelf, and it is also exploring new developments as east coast markets tighten and onshore gas remains locked up by state governments.

The deepwater Dory drilling is likely to be the most expensive of a string of planned Bass Strait wells spurred by the east coast gas price surge and onshore production restrictions in NSW and Victoria.

Cooper Energy and Origin Energy are also planning wells in Bass Strait from early next year, in what will be the first drilling in the nation’s most prolific oil and gas region for three years.

Exxon Australia chairman Richard Owen said Dory, bought from Liberty Petroleum for an undisclosed sum, was the first ground acquired by Exxon in more than 20 years in the offshore Gippsland Basin, where it operates a 50-50 joint venture with BHP Billiton.

“This is an important milestone for our company as well as for Australia’s domestic gas market, as this acquisition has the potential to find new gas supplies for homes and businesses at a time when we need it most
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“We have a task force of engineers and geoscientists looking at options for new gas developments, and we are planning to drill two deepwater exploration wells (in the newly acquired acreage).”

The statements were made in community advertising in Victoria’s Gippsland region last week.

They expand on August reports in The Australian that the oil major had contracted a rig to drill Dory just off the continental shelf in the third quarter of next year and had shifted from its previous stance that most gas left under Bass Strait was hard to extract and full of impurities.

Exxon has been running the big Longford gas plant at record levels since the start of 2016. But it says it cannot continue to do so and has flagged a big output drop in 2018 to the Australian Energy Market Operator.
QUOTE
Despite this year’s commissioning of the $5.5 billion Kipper-Tuna-Turrum field and plant development, this is back to levels the plant ran between 2011 and 2015 and was one of the reasons — along with increased power station demand — the Australian Energy Market Operator is flagging an east coast gas shortfall next year.

“The AEMO forecasts factor in a 26 per cent decline in Bass Strait production, which is considerably sharper than we had expected, and somewhat difficult to believe given recent investment,” Goldman Sachs analysts said last week.

With the political spotlight set to remain on high, gas prices and the potential for east coast shortages, Exxon now says it is focused on proving up more Bass Strait ­reserves, which it says are less than 5 per cent of those of eastern Australia.

“Our objective now is to leverage our extensive infrastructure, the wealth of knowledge and data we have collected and the highly skilled service industry accumulated in Gippsland, by identifying new gas development opportunities,” Mr Owen said.

The new hunt for gas comes as Exxon and BHP await a decision from the federal and Victorian governments on a request for renewal of the retention licence on the South East Remora gas field in Bass Strait.

The resources giants, whose Remora licence expired eight months ago, want to delay developing the field for at least another five years, saying it is not yet viable because high levels of carbon ­dioxide in the gas mean it will need to wait until the new Longford carbon dioxide plant that is processing KTT gas has spare ­capacity.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 29 2017, 08:22 AM
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In Reply To: dr_dazmo's post @ Sep 29 2017, 07:47 AM

Learned Doctor, it would seem both sides are playing bargy , possibly in hope the Govt will step in (and subsidise/ regulate). The BPT - Origin deal moving Lattice to Beach has seen quite a bit of positioning, with ORG wanting to ensure supply to its customers after selling the assets.
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More supply has come into the domestic gas market in the last few months but the problem is the demand could be higher than expected next year. Origin signed a a gas deal with South Australian tissue manufacturer Kimberly-Clark on Thursday, which means the company can keep its plant open.
also
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and to have indications of the gas prices in the supply contracts between Origin and Lattice.

While both parties declined to reveal the price of the contracts, Mr Kay said it was higher than Beach's average realised gas price in 2016-17 of $6.10 a gigajoule. The tariff would increase in three annual step-ups, linked to the inflation rate, then move to "market prices".

"One can assume they are going to have a rising gas price for the next four or five years"

Am always suspicious when "landed Asian prices" are used as a comparison, because the LNG costs of compression, shipping and etc are glossed over; at least $2-3 should be assumed for this.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
dr_dazmo
post Posted: Sep 29 2017, 07:47 AM
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Hi All,
Seems like good news from a Royalty perspective, but RCO will need to pay dividends to help pay the gas bill..
I've pasted only sections of the full article.

Cheers
Dr_Dazmo

http://www.abc.net.au/news/2017-09-28/gas-...ng-gone/8998570

Gas prices: Deal done but the days of cheap gas are long gone

Forecasting prices is fraught at the best of time, but the best guess from analysts after the supply deal is that wholesale gas prices will bump along in a band of $7-to-$10 per gigajoule (GJ).In other words, still around a 100 per cent mark-up on two years ago.

"[There is] no change in our view for medium-term gas prices, the days of cheap gas are over," UBS energy analyst Nik Burns wrote in a note to clients after the deal was brokered.

The positive angle for consumers was the guarantee of supply was likely to at least curtail the more savage price spikes, in the short term at least.

"Heightened scrutiny and increased transparency in gas markets will result in less gas being offered for materially above $10/GJ in our view," Mr Burns said.

The view across the road at Credit Suisse was similar.

"We remain comfortable that wholesale prices will remain in the A$7-10/GJ range," Credit Suisse analysts wrote.

Undoubtedly, the big industrial consumers played a shrewd game in boycotting deals with the gas suppliers in the expectation the Government would bring in some sort of price control.

In the aftermath of the deal, they are unlikely to be offered anything like the $16/GJ contracts that were being hawked around six-to-twelve months ago.

The ACCC point of view is there is an "appropriate benchmark price" of $5.87/GJ in Queensland and $8.17/GJ in Melbourne based on current Asian LNG spot prices.








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Always remember the Golden Rule - Those with the Gold make the Rules!
 
dr_dazmo
post Posted: Sep 26 2017, 07:39 AM
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In Reply To: nipper's post @ Sep 25 2017, 05:29 PM

Thanks Nipper, it will be interesting to see the eventual outcome.
While the proposed reduction from Exxon/BHP is a national issue given the current gas shortfall (real or imaginary), created by the chasing of export dollars, it raises some other issues in a "free" economy.

Probably heading off track, but it would be interesting to see what the Govt's actions would be if Bass Strait was owned by another foreign investor, such as the Chinese.

I'm not saying the Govt shouldn't regulate to protect national interests, but it seems like the thin edge of the wedge!

Perhaps the Govt should also examine the logic of closing coal power generation rather than looking at gas in isolation?
I get the global warming argument, but if you are happy to sent coal offshore to be burned, why not cut out the middleman & burn it domestically to ensure cheaper power??
Ultimately, as it's called "global" warming, it is somewhat irrelevant if the coal is burned in Victoria or India.

Cheers
Dr_Dazmo



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Always remember the Golden Rule - Those with the Gold make the Rules!
 
nipper
post Posted: Sep 25 2017, 05:29 PM
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QUOTE
Bass Strait gas production from Exxon Mobil and BHP Billiton will drop 26 per cent next year, taking more than the Australian Energy Market Operators expected shortfall out of the east coast gas market, according to the Australian Competition and Consumer Commission.

The ACCC’s gas inquiry report released today, which has been written using the ACCC’s special powers to compulsorily acquire information, says Exxon and BHP’s Gipplsand Basin Joint Venture will dramatically reduce output next year.

“Production in 2018 from the Gippsland Basin Joint Venture GBJV, which is by far the biggest producer in the southern states, is expected to fall from a record level of 330 PJ this year to 244 PJ due to both natural decline in legacy gas fields and investment decisions made by the GBJV,” the ACCC said.

“While this level of production is in line with GBJV’s production rates over 2011—15, this has left a significant gap in the supply needed to meet the needs of domestic users in the southern states.”

The drop of 86 petajoules is more than the expected 55 petajoule east coast shortage that AEMO today warned was coming next year.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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dr_dazmo
post Posted: Sep 14 2017, 08:37 AM
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Hi All,
Interesting article in relation to gas production.
I assume that a fair chunk of the (estimated) offshore Victorian production (+13%) related to Bass Strait.

Cheers
Dr_Dazmo

http://gastoday.com.au/news/gas_production...rgyquest/103655

<h6 itemprop="author"> Fri 8 September 2017 </h6> [email="?subject=Re:Gas%20production%20jumps%20in%202017:%20EnergyQuest&body=http://gastoday.com.au/news/gas_production_jumps_in_2017_energyquest/103655"] [/email] Gas production jumps in 2017: EnergyQuest Surging production lifted total Australian natural gas output to a record 3,770 PJ in FY 2017, up 27 per cent from the previous year.

East coast LNG production and east coast domestic gas production both increased in the second quarter, up by 19.4 per cent to 5.0 MMt of LNG exports and by 11.9 per cent to 193.2 PJ of domestic gas.

Queensland CSG production, increased by 20 per cent to 333 PJ, and offshore Victorian production grew by 13 per cent to 110 PJ in the final quarter of FY 2017.

These estimates are contained in the just released September quarterly review by independent energy consultancy, EnergyQuest.

“East coast gas production is catching up with demand”, said EnergyQuest CEO Dr Graeme Bethune.

“Queensland is importing less gas to the point where it is increasingly self-sufficient.

“Even with the LNG plants, it is importing only about 2 PJ per month, or 1.4 per cent of the east coast supply and there has been a net flow of gas south from Queensland since the first week of June, for the first time since November 2015.

“However, New South Wales, South Australia and Tasmania are increasingly reliant on gas imports from Queensland and offshore Victoria.

“NSW imports around 10 PJ per month and even South Australia nearly 4 PJ.

Although there has been an increase in domestic gas supplies, east coast prices remain globally uncompetitive.





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Always remember the Golden Rule - Those with the Gold make the Rules!
 
dr_dazmo
post Posted: Aug 22 2017, 03:29 PM
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I assume this indicates royalties should recommence at some stage.

Cheers
Dr_Dazmo

Consolidated Tin Mines Ltd (ACN 126 634 606) (ASX Code: CSD) (Company) is pleased to provide an update on the Company’s activities following commencement of zinc & copper concentrate production at Mt Garnet.

Significant Matters

· The Mt Garnet processing plant commissioning has been completed with first concentrate produced on 24 July 2017.

· Ore is currently being mined from the Mt Garnet underground mine and delivered to the Run-Of-Mine (ROM) adjacent to the mine and processing plant.





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Always remember the Golden Rule - Those with the Gold make the Rules!
 
nipper
post Posted: Aug 7 2017, 09:03 AM
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In Reply To: dr_dazmo's post @ Aug 7 2017, 08:16 AM

The prospect may well not be in the original area; rather, on the flank and where the Continental shelf drops away rather dramatically, I suspect. But the report says it is 'top' Latrobe, which was always the producer for the oilfields, ad likely without much CO2 or other contaminants.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
dr_dazmo
post Posted: Aug 7 2017, 08:16 AM
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In Reply To: nipper's post @ Aug 7 2017, 07:21 AM

Thanks Nipper, I hadn't seen that!
Assuming that the find is within the Weeks area (I've never seen a map which clearly defines the area covered), it should ensure plenty of value for RCO in the coming years (and decades)..

Cheers
Dr_Dazmo



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Always remember the Golden Rule - Those with the Gold make the Rules!
 
 


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