11 Sept 2006dividend declaration● Neutral
Origin set the dividend reinvestment plan price for its 9c final dividend at $6.500997 per share, with no discount. Payment is due 29 September 2006. Administrative.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
8 Sept 2006drilling spud● Neutral
Beach Petroleum spudded the Glenaire 1 gas exploration well in the Otway Basin's PEP 160, in which Origin holds 20%. The well is planned to reach 3,945m, assessed at a mean 68 BCF potential. Result due in about 63 days.
8 Sept 2006contract award▲ Good
New Zealand Oil & Gas, a Kupe partner (15%), announces the same US$200m Technip contract for Kupe. It states production is expected by mid-2009. A partner's repeat of Origin's release.
8 Sept 2006contract award▲ GoodMajor
Origin, as Kupe operator, awarded the US$200m contract for the NZ$980m Kupe project's development to Technip, confirming the earlier alliance. Platform installation starts in the March quarter of 2007, with production by the first half of 2009.
6 Sept 2006well test result▼ Bad
Comet Ridge reports Mahalo 2 (Origin 30%) drilled to 234m with no measurable gas or water flow from the coals, suggesting low permeability or drilling damage. Comet Ridge has now earned its 40%. The result is a setback for the Mahalo project, which has Origin as a 30% holder.
5 Sept 2006drilling result▲ GoodMajor
Origin confirms Jingemia 8 (49.189%) found oil-saturated Dongara Sandstone from 2,482m, about 30m above the original oil-water contact. Pressure data shows it is not connected to the rest of the field. The well will be completed and connected to the Jingemia facility.
5 Sept 2006drilling result▲ Good
ARC Energy relays Origin's 5 September Jingemia 8 update: oil-saturated Dongara Sandstone from 2,482m, not in pressure contact with the rest of the field. Well to be completed for production. Duplicate of Origin's release.
5 Sept 2006drilling result▲ Good
Victoria Petroleum relays that logs show the whole Dongara Sandstone section in Jingemia 8 is oil-saturated, and its pressure suggests a separate up-dip compartment. The well will be cased for production. Victoria's 4,000-5,000 bbl/d target is its own view.
1 Sept 2006drilling progress report▲ Good
Victoria Petroleum (5%) relays that Jingemia 8 is at 2,565m with a 31m Dongara Sandstone oil zone indicated (2,478-2,509m), about 34m above the original oil-water contact. Its 4,000 bbl/d and 4-8 million barrel figures are Victoria's own views, not Origin's.
31 Aug 2006drilling progress report▲ Good
Jingemia 8 reached total depth of 2,565m on the Perth Basin's L14 licence. The Dongara Sandstone top is interpreted at 2,478m, about 34m above the field's original oil-water contact, subject to wireline logging. Logging is next.
31 Aug 2006drilling progress report● Neutral
ARC Energy (44.141%) relays Origin's 31 August report: Jingemia 8 at 2,565m, with the Dongara Sandstone interpreted at 2,478m. ARC says the implications can only be judged after logging and evaluation. No new information.
30 Aug 2006annual report▲ GoodMajor
Origin reported FY2006 profit of $332m, up 10%, on revenue of $5,950m, with a final dividend of 9c (18c for the year). Exploration and Production EBITDA fell 11% to $205m. Guidance is for production to reach about 100 PJe a year by year end, from 78 PJe.
30 Aug 2006investor presentation● Neutral
Slide presentation for the FY2006 result, repeating the figures already reported: revenue $5,950m, EBITDA $1,087m (+18%), profit $332m (+10%), gearing 42%. Adds that over 200 PJe was added to 2P reserves and that safety targets were missed.
25 Aug 2006annual report▲ Good
Contact Energy, 51.36% owned by Origin, reported EBITDAF of NZ$557.0m (up 14%) and a profit of NZ$280.9m for the year to June 2006, with a final dividend of 16c. Contact warns future gas supply will be costlier than cheap Maui gas.
25 Aug 2006drilling progress report● Neutral
Victoria Petroleum relays that Jingemia 8 was at 2,281 metres on 25 August, preparing to drill ahead; the Dongara Sandstone target is at about 2,438m. Routine partner repeat with no result.
24 Aug 2006drilling progress report● Neutral
Jingemia 8 was drilling ahead at 2,264 metres on 24 August, after 1,728 metres that week, with surface casing set at 532m. Target is 2,560m. Routine update with no result yet.
24 Aug 2006drilling progress report● Neutral
ARC Energy re-lodges Origin's 24 August weekly report: Jingemia 8 drilling ahead at 2,264 metres. Duplicate with no new information.
14 Aug 2006drilling spud● Neutral
Partner ARC Energy relays Origin's announcement that Jingemia 8 has spudded in L14 (ARC 44.141%). Its managing director says it is the first well for the refurbished Century 18 rig. Same facts as Origin's release.
14 Aug 2006drilling spud● Neutral
Partner Victoria Petroleum (5%) relays the Jingemia 8 start. It says success could lift field output to a targeted 4,000 barrels a day, and it estimates the field could hold 4-8 million barrels recoverable. These figures are Victoria's, not Origin's.
14 Aug 2006drilling spud● Neutral
Origin began drilling the Jingemia 8 oil appraisal/development well in Perth Basin licence L14 on 13 August. It targeted the Dongara Sandstone at about 2,438m, with planned total depth of 2,560m; Origin holds 49.189% and ARC 44.141%.
25 July 2006material agreement▲ GoodMajor
Origin will spend a further $114m to double Spring Gully coal seam gas capacity to about 85 TJ/d, supplying QAL, Incitec Pivot and Energex. This follows the Phase 3 and 4 expansion already noted. It is also seeking approval for a 1,000 MW power station on the site.
12 July 2006regulatory community update▲ Good
The Victorian Government endorsed Origin's proposed gas-fired Mortlake power station in southwest Victoria. Final approvals are still needed, and the Origin board expects to decide later this year whether to build, depending on electricity supply and demand.
5 July 2006production update▼ BadMajor
BassGas has begun selling gas (mid-May) and liquids (June), with ramp-up continuing. Cost has risen from $450m to about $750m after rectification work. Arbitration against builder Clough is not expected to conclude until late 2007; Origin's claim is about $100m.
5 July 2006production update● Neutral
AWE, a 30% BassGas partner, relays Origin's 5 July update: gas and liquids sales have started, cost has risen from $450m to about $750m, and the Clough arbitration (claim about $100m) won't conclude until late 2007. Repeats Origin's own release.
29 June 2006material agreement▲ GoodMajor
Origin, as 50% operator, announced the Kupe joint venture's go-ahead: cost now estimated at NZ$980m, reserves up about 15% to 389 PJe, online mid-2009 at about 20 PJ a year of gas. Resolves the pending decision; production is a year later than the 2008 previously expected.
29 June 2006material agreement▲ Good
Partner New Zealand Oil & Gas announced the Kupe joint venture's unanimous final investment decision: budget NZ$980m, reserves 389 PJe, first gas by mid-2009, construction from September 2006. Same decision as Origin's release; this is NZOG's version.
28 June 2006material agreement termination▼ BadMajor
Origin and Contact agreed to terminate the dual-listed merger agreement signed 20 February 2006, because Origin saw insufficient support from key Contact shareholders. Origin would not improve terms for Contact minorities. Origin keeps its 51.4% Contact stake and Kupe operatorship.
23 June 2006drilling progress report● Neutral
Ooline 1, an oil exploration well in ATP470P (Origin 90%, Santos 10%), began drilling 18 June and was at 1,435 metres, targeting 1,554 metres. It is 8 km east of the Emu Apple 1 discovery. Routine progress update.
20 June 2006investor presentation● Neutral
Grant King's UBS conference presentation restates Origin's strategy: steady cashflows and EPS growth of 10-15% a year on average, gas close to markets, and 2P reserves with over 25 years of production. No new information evident in the readable text.
15 June 2006drilling result▲ GoodMajor
Emu Apple 1 (Origin 90%, Santos 10%) is a new oil pool discovery: Boxvale Sandstone recovered 10.5 barrels of 35.5 API oil on test. A deeper zone flowed water. The well is cased and suspended pending completion as an oil producer; the rig moves to Ooline 1.