May 09 - Origin Confirms Pangaea CSG Acquisition Adding Greater Flexibility to Origin’s Domestic Gas Supply Portfolio

Source Press Release
Company Origin Energy Limited 
Tags Deals, Upstream Activities
Date May 13, 2009

Origin Energy Limited today provides an update on its acquisition of exploration permit ATP 788P. Further to Origin’s announcement on 22 April 2009, Australia Pacific LNG Pty Ltd has today stated that it will not exercise its option to acquire the interest. Origin will therefore acquire a 100 per cent interest in ATP 788P. On completion, the acquisition is expected to provide 1,150 PJ of 3P CSG reserves.

Origin’s Managing Director Mr Grant King said, "ATP 788P is a high quality CSG resource which contains the southerly extension of the highly prospective Undulla Nose province in Queensland. 100 per cent ownership of the permit will allow Origin to control the exploration, development and production of this resource."

The permit is located near gas transmission infrastructure that services existing markets and is also close to Origin’s Darling Downs power station and a number of other gas fired power stations."

 The transaction typifies Origin’s strategy of securing gas resources that are located near infrastructure, can be developed at competitive prices and are close to market. It is this strategy that has underpinned our investment in new gas fired power generation and supported the performance of our retail business," Mr King said."

These CSG reserves will add to Origin’s domestic gas supply portfolio, which also includes ownership of conventional gas reserves and contracts for purchases from third parties. This portfolio provides Origin with the flexibility to optimise the development of its upstream gas position to support its retail gas demand and supply to existing power stations."

It also positions us well to supply new domestic gas fired power generation. As Australia moves towards a lower emissions economy, gas is likely to play a key role as a fuel for baseload generation in place of coal given its lower emissions intensity," Mr King said. "Our current portfolio of gas reserves provides the flexibility to respond to any increase in demand from gas fired power generation following the introduction of a domestic carbon price."

The acquisition of ATP 788P will be completed after certain conditions precedent have been satisfied, including a number of approvals from relevant Government departments. Origin has a solid understanding of the exploration and production potential of this area and expects to book Proved, Probable and Possible (3P) CSG reserves of around 1,150 PJ in respect of ATP 788P following completion of the transaction, together with further contingent resources (2C) of approximately 500 PJ.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd