31 July 2007resource reserve update▲ GoodMajor
Origin lifts 2P reserves 42% to 3,471 PJe from 2,436, with coal seam gas up 1,095 PJe (80%) to 2,470 PJe. Record FY07 sales revenue of $475m; Otway Gas Project first sales expected by end of August.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
27 July 2007well test result● Neutral
Victoria Petroleum says Santos will perforate and production test Wilpinnie-4 (Tomcat, PPL 93; Origin 6.595%) over 1,482.5-1,492.3m. The earlier test flowed about 144 bopd. Results to follow.
26 July 2007well test result▲ Good
ARC reports Apium 2 (Origin 50%) was completed as a gas producer at 2,793m TD with shows in the Dongara Sandstone. The rig is leaving for the Canning Basin. No flow rate is given yet.
25 July 2007agm notice● Neutral
Origin forwards Contact Energy's notice (Origin holds 51.36%): annual profit due 28 August 2007, annual meeting in Christchurch on 26 October 2007, final dividend record date 11 September 2007. Administrative only.
25 July 2007investor presentation● Neutral
COO Karen Moses presents to the Citi Climate Change Conference on emissions trading and Origin's carbon approach, including that gas-fired power has a significant role in cutting emissions. The visible text carries no new company figures.
25 July 2007drilling result▲ Good
Beach reported Alwyn-7 (1,295m) and Calvin-1 (1,590m; DST recovered 16 bbls oil) cased and suspended as potential oil producers, both with Origin at 13.19%. Origin has no interest in Hurricane-2, which found an oil accumulation too small to develop and was abandoned.
24 July 2007drilling progress report▲ Good
Origin reports Apium 2 (50%) was completed in the Dongara Sandstone and perforated at 2,760.7-2,765.7m. The rig was released 21 July and moves to ARC's Canning Basin program; surface facilities are being prepared for production testing.
19 July 2007drilling result▲ Good
ARC reports Apium 2 (Origin 50%) hit the Dongara Sandstone at 2,756.7m, about 7m higher than Apium 1, and reached total depth of 2,793m. Shows were seen from 2,757 to 2,781m; the well is preparing to run completion.
12 July 2007drilling progress report● Neutral
Origin repeats ARC's 12 July Apium 2 update: drilling ahead in Kockatea Shale at 2,547m measured depth, with the Dongara Sandstone target at 2,752m. No new information.
12 July 2007drilling progress report● Neutral
ARC reports the Apium 2 sidetrack (Origin 50%) was successful and is drilling ahead in the Kockatea Shale at 2,547m, above the Dongara Sandstone target at 2,752m. No hydrocarbon indications yet.
11 July 2007drilling result▲ Good
Beach reports Cooper Basin oil finds. Origin's 13.19% wells Gambero-1 (12m oil column) and Mudlalee-4 (15m oil column) were successful; Big Lake 84 reached 2,989m TD. Small additions to Origin's Cooper oil push.
9 July 2007drilling progress report● Neutral
QGC weekly report on Surat coal seam gas wells. Codie #2 (Origin CSG 40.625%) is not yet drilling, with the rig on site. Other wells reported are 100% QGC or QGC/SGA permits with no Origin interest stated.
5 July 2007drilling progress report● Neutral
ARC reports Apium 2 (Origin 50%) is preparing the wellbore for the sidetrack, running a casing scraper into the hole. No hydrocarbon indications yet; the well started on 29 June and was planned to take about 13 days.
4 July 2007drilling progress report● Neutral
Beach weekly report on Cooper Basin wells: Big Lake 84 (Origin 13.19%) is drilling ahead at 2,455m, Alwyn-7 is preparing to cement surface casing, and Gambero-1 is drilling at 888m. No results for Origin's interests yet.
3 July 2007contract award▲ GoodMajor
Origin signs a 20-year gas supply agreement with Rio Tinto Aluminium for 470 PJ of coal seam gas to its Yarwun refinery, starting between March and July 2010 and ramping to 22.8 PJ a year. Origin expects to spend about $260m developing Walloon gas fields.
2 July 2007drilling spud● Neutral
Origin repeats ARC's news that the Apium 2 gas appraisal sidetrack (Origin 50%) in L1 started on 29 June, targeting the Dongara Sandstone near 2,752m with planned total depth about 2,812m. No new information.
2 July 2007asset acquisition disposition▲ GoodMajor
Origin completes the sale of its Networks business to APA for $556.5m, including its 33.3% SEA Gas stake ($133.2m, completed 29 June) and its 17% Envestra stake. This resolves the sale agreed on 4 April, on the expected July timing.
29 June 2007drilling spud● Neutral
ARC reports Apium 2 (Origin 50%) started on 29 June as a sidetrack of Apium 1 in L1, targeting the Dongara Sandstone near 2,752m, about 10m updip of Apium 1. It is expected to take 13 days.
27 June 2007drilling progress report● Neutral
Beach weekly report on Cooper Basin wells: Big Lake 84 (Origin 13.19%) is drilling ahead in the Bulldog Shale at 1,394m. No flow results for Origin's interests.
26 June 2007investor presentation● Neutral
MD Grant King presents to the UBS conference on the value of integration. It recaps known events, including the Darling Downs commitment and Quarantine expansion, and electricity cover for FY07 and FY08. No new figures are visible in the text provided.
20 June 2007drilling result▼ BadMajor
ARC reports Drakea 2 (Origin 50%) found hydrocarbons in the High Cliff and Kingia Sandstones but with low permeability, so commercial production at this location is unlikely. The well is suspended for possible re-entry. This resolves the sidetrack hope from Drakea 1.
20 June 2007drilling progress report● Neutral
Beach weekly report on Cooper Basin wells: Big Lake 85 and Moomba 178 (Origin 13.19% each) have both reached total depth, at 2,917m and 2,727m, with no result stated. No flow results.
20 June 2007drilling result▼ Bad
Origin repeats the Drakea 2 result: hydrocarbons in the High Cliff and Kingia Sandstones, but all reservoir sections are low permeability and unlikely to produce commercially here. The well is suspended for possible re-entry, and the rig moves to Apium 2.
19 June 2007regulatory community update● Neutral
Origin's MD welcomes the Queensland Competition Authority's recommended increase in regulated electricity tariffs, expecting more competition ahead of full retail competition in July. This bears on the Sun Retail business bought in February; no financial effect is stated.
14 June 2007drilling progress report● Neutral
ARC reports the Drakea 2 sidetrack (Origin 50%) drilling ahead in the High Cliff Sandstone at 2,773m, with elevated gas readings and oil shows. Their significance will be assessed after total depth and logging.
13 June 2007drilling progress report● Neutral
Beach weekly report on Cooper Basin wells: Big Lake 85 (Origin 13.19%) is drilling ahead in basement at 2,907m, and Moomba 178 (Origin 13.19%) is at 2,727m conditioning the hole before casing. No flow results.
13 June 2007farm in farm out agreement▲ GoodMajor
Origin agrees a heads of agreement for ARC to take 40% of Bass Basin permit T/44P (granted 100% to Origin in the March quarter) by reimbursing Origin's back-costs, with an option for a further 10%. It is subject to formal documents and approvals; seismic is planned for early 2008 and a well later.
12 June 2007drilling progress report● Neutral
QGC weekly report: Argyle #15 (Origin CSG 40.625%) reached 667m with 24.9m of gassy coal and is cased awaiting a workover rig. Other wells are QGC-only. No flow results.
12 June 2007material agreement▲ GoodMajor
Origin commits to build the 630MW Darling Downs gas-fired power station near Braemar, Qld, with $780m of contracts signed with GE and CH2M Hill. About $500m more goes to Spring Gully and Walloon gas development. Commissioning is due Q4 2009, resolving the pending decision on Darling Downs.
8 June 2007drilling progress report● Neutral
Origin repeats the Drakea 2 sidetrack update: drilled to 1,919m in the Eneabba Formation, with rig repairs under way. The target High Cliff Sandstone is expected near 2,716m. No new results.