CONTENTS Contents .........................................................................................................................i 1. Letter of Invitation ...........................................................................................................ii 2. Notice of Invitation ..........................................................................................................4 3. Release Area Map EPNT14-1 .......................................................................................7 4. Release Area Map EPNT14-2 .......................................................................................8 5. Application Requirements ..............................................................................................9 6. Criteria for Assessment ..................................................................................................10 7. Availability of Data ..........................................................................................................11 8. Exploration Permit applications under Section 29 Native Title Act (Cwlth) ..................12 9. Closing Dates and Lodgement of Applications ..............................................................12 10. Contacts .........................................................................................................................12 Page i of 12 1. Letter of Invitation Page ii of 12 2. Notice of Invitation NORTHERN TERRITORY OF AUSTRALIA Petroleum Act NOTICE OF INVITATION FOR PETROLEUM EXPLORATION PERMIT APPLICATION (RELEASE ROUND – 16 JUNE 2014) Pursuant to section 16(1) of the Petroleum Act of the Northern Territory, the Minister for Mines and Energy (through the Minister’s delegate) invites applications for the grant of petroleum exploration permits for the areas described below. This invitation commences on 16 June 2014 and ends on 12 December 2014. Part llA of the Petroleum Act – Prescribed petroleum acts above high-water mark or for infrastructure facilities – applies to the area the subject of this invitation. Applications should be prepared in accordance with section 16(3) of the Petroleum Act and submitted to the Department of Mines and Energy prior to 4:00 pm ACST on Friday, 12 December 2014. Further details of the requirements for applications are set out below. DESCRIPTION OF AREA Release Area EPNT14-1 MAP SHEET SD53 (Roper River) Block No.s 3258 3259 3330 3331 3332 3402 3403 3404 3405 MAP SHEET SE53 (Newcastle Waters) Block No.s 14 15 16 17 18 86 87 88 89 158 159 160 161 230 231 232 032 303 304 374 375 446 447 518 519 590 591 662 663 664 665 734 part 735 part 736 737 807 part 808 809 881 953 954 Assessed to contain 47 full and 3 part blocks Page 4 of 12 Release Area EPNT14-2 MAP SHEET SG52 (Peterman Ranges) Block No.s 787 part 788 part 789 790 791 859 part 860 861 862 863 931 part 932 933 934 935 936 1003 part 1004 1005 1006 1007 1008 1075 part 1076 part 1077 1078 1079 1080 MAP SHEET SG53 (Oodnadatta) Block No.s 937 Assessed to contain 21 full and 8 part blocks APPLICATIONS Applications for exploration permits in relation to the above release areas must be accompanied by: (a) (b) Details of: i. The applicant’s technical assessment of the petroleum potential of the area, including the concepts underlying its proposed exploration program, with sufficient detail to support that program. ii. The applicant’s minimum guaranteed proposal (including indicative defendable minimum expenditure) for exploration wells to be drilled, 3D and 2D seismic and other surveying activities, data evaluation and other work, for each year of the first two years of the permit term. This proposal, to be known as the minimum guaranteed work program should comprise work expected to involve a substantial exploration component – normally, appraisal work should not be included. iii. The applicant’s proposal (including indicative minimum defendable expenditure) for exploration wells to be drilled, 3D and 2D seismic and other surveying activities, data evaluation and other work, for each of the three remaining years of the permit term. This proposal, to be known as the secondary work program, should comprise work expected to involve a substantial exploration component – normally, appraisal work should not be included. Particulars of: i. The technical qualifications of the applicant and of its key employees. ii. The technical advice available to the applicant. iii. The financial resources available to the applicant, including evidence of the applicant’s ability to fund the work program proposed, a statement of other exploration commitments over the next five years, and a copy of the latest annual report and quarterly reports for each applicant company. iv. Where relevant, the viability of the consortium lodging the application, including evidence that a satisfactory settlement has been or can be, reached on the joint Operation Agreement (eg. a copy of a signed Heads of Agreement Dealing or similar). Page 5 of 12 v. (c) The percentage participation interest of each party to the application. Such other information as the applicant wishes to be taken into account in consideration of the application. Guidelines are available from the Department of Mines and Energy website at www.minerals.nt.gov.au to assist applicants to become familiar and to comply with their statutory obligations when preparing and lodging their application for exploration. FEE At the time of lodgement each application must include a bank cheque payable to ‘the Receiver of Territory Monies’ issued by an Australian deposit taking institution for payment of the application fee. The fee is prescribed by the Petroleum Act, as at 1 July 2014 the fee is $5,097.00. This amount should be checked prior to drawing a cheque for payment. SUBMISSION OF APPLICATIONS Applications together with supporting data for release areas EPNT14-1 and EPNT14-2 must be lodged by 4.00 pm (ACST) on Friday, 12 December 2014 at the following address: Executive Director, Energy Energy Directorate Department of Mines and Energy 4th Floor Paspalis Centrepoint Building 48-50 Smith Street Mall DARWIN NT 0800 The following special instructions should be observed: Two copies of the application and supporting data, together with the applicable fee, should be enclosed in an envelope or package. The application should then be sealed and clearly marked as “Application for EPNT14-1 or EPNT14-2 – Commercial-in-Confidence”. This envelope or package should then be enclosed in a plain covering envelope or package and delivered by hand or posted to the address above. A Release Package is available at www.minerals.nt.gov.au Enquiries may be directed to the Petroleum Registrar, Energy Titles, Energy Directorate on telephone + 61 8 8999 7112 Dated: 16 June 2014 Signed: Pursuant to an Instrument of Delegation dated 4 February 2014 Page 6 of 12 3. Release Area Map EPNT14-1 Page 7 of 12 4. Release Area Map EPNT14-2 Page 8 of 12 5. Application Requirements Applicants need to refer to Section 16(3) of the Petroleum Act when making application for a permit. 5.1 Particulars of the applicant(s) Full name of applicant/s - In case of individuals, please state full name of each person. In the case of corporations, state name of each corporation as shown on their latest Certificate of Incorporation. Australian Company Number (ACN or the ARBN where the applicant is a foreign company) – This is the number described on the Certificate of Incorporation issued by the Australian Securities and Investment Commission. Principal or residential address - Please state each applicant’s principal or residential address. This is the physical address at which documents will be served on each applicant. Postal Address - Please state postal address of each applicant. Interest - Where the application is made by two (2) or more persons the proposed sharing arrangements between the applicants. 5.2 Particulars of Release Area Schedule of blocks being described by reference to the name/s of a map sheet/s (e.g. Darwin SD52) of the 1:1,000,000 Series and the number of graticular sections shown thereon. A map clearly delineating the application (release) area and boundaries of existing permit or licence areas in the immediate vicinity of the application area. 5.3 Assessment of Release Area Applicant’s assessment of the petroleum potential of area, including a geological and geophysical review and technical assessment, including concepts underlying the proposed exploration program. 5.4 Work Program Proposed technical works program for exploration of the blocks during each year of the term of the proposed permit and must demonstrate show an accelerated exploration program. 5.5 Technical and Financial Capacity Evidence of the technical and financial capacity of the applicant/s to carry out the proposed technical works program and to comply with the requirements of the Petroleum Act. o Applicants should list the professional staff proposed to be used in the program, together with a short resume of their past record of proven technical experience. o Normally, applicants are expected to have at least sufficient net current assets to complete the first two years’ program and to provide reasonable assurance that further funds will be forthcoming. If the applicant is a publicly listed company the last issued annual company report or the relevant sections thereof and the last issued quarterly report to the Stock Exchange should be included. o If the applicant is not a public company, a report should be furnished giving the same information as would be furnished in the annual report of a public company, and in the latest quarterly stock exchange report. In either case a statement of financial commitments other than those proposed in the application, and any additional source of finance should be included. This statement should include a list of interests in petroleum tenements in other states of Australia. 5.6 Operator The name of the designated operator and evidence of the technical capacity of the operator to carry out the proposed technical works program and a single address for service of notices in respect of the application. 5.7 Other Information Past performance of the applicant/s. Prescribed application fee - non-refundable, payable to Receiver of Territory Monies (RTM). Such other information in support of the application as the applicant thinks fit. Page 9 of 12 6. Criteria for Assessment of Applications The Northern Territory Government has a priority aim to encourage accelerated exploration of energy resources, ensuring that prospective oil and gas reserves are explored for, discovered and developed efficiently and expediently as practicable. In any submission for the award of a permit, applicants will be expected to take into account all relevant information, such as environment protection, heritage and cultural issues that could impose added requirements on the grant of tenure. An applicant must first satisfy the Minister for Mines and Energy (the Minister) of the capacity to undertake the proposed five (5) year work program, particularly: Demonstrable technical expertise that will meet the five (5) year exploration program as offered in the application. Assurances that the applicant has the financial resources to fund the exploration program in the first two (2) years and continue to have access to sufficient resources to meet the requirements of the proposed five (5) year work program including evidence of the applicant’s ability to raise additional funding for exploration purposes where implied. Applicant’s past performance in other petroleum exploration areas in Australia or, if relevant, elsewhere. Evidence of performance in a similar area either as operator or partner in a Joint Venture. Permit applications received will be assessed against the criteria by a panel of qualified departmental officers within the Department of Mines and Energy. A report and recommendations to approve or not approve the grant of a permit will be prepared for the Minister (delegate). Applications should be submitted in writing and will be assessed on the information provided, together with any additional information, requested by the Minister (delegate). Applicants may also be invited to attend an interview with the department to clarify information provided. Please note that the composition and timing of the work program may not be amended through the provision of additional information and other fundamental changes to the original application will not be accepted. In the recommendation to the Minister (delegate), consideration of the applicant’s past performance in relation to meeting work commitments and environmental management in Australia and, if relevant, elsewhere is considered. Consideration of past performance also extends to prior applications where applicants have failed to comply with the negotiations in good faith principles of the Native Title Act 1993 (Cwlth) or similar negotiations under the Aboriginal Land Rights (NT) Act (Cwlth) or other reasons as to why past applications have not been successful. Compliance with previous reporting and data submission requirements will also be considered. Whilst assessments will take into consideration the prospectivity of an area (highly prospective or green field) the minimum guaranteed work program value (years one and two) cannot be reduced once the permit has been awarded. Work programs proposed must significantly advance the exploration status of the area with the aim to develop that resource as soon as possible. Assessment Criteria When assessing an application, the following will be taken into account; but is not exclusive to other requirements. 1. 2. 3. 4. Financial resources and technical expertise to execute the full five (5) years of proposed exploration and development activities. The extent of which the applicant’s technical assessment supports the level of seismic surveying and the number of conceptual targets of wells proposed in the application. The amount, type and timing of seismic surveying or equivalent activity to be carried out and/or accessing existing non-exclusive seismic data. The number and timing of wells to be drilled, provided there is an adequate supporting program of geological and geophysical work. Page 10 of 12 5. 6. 7. 8. 9. 10. Expenditure, defendable and relevant to exploration activities and relevant to the prospectivity of the area. Other surveying, data acquisition and reprocessing to be carried out. Pre-purchased, non-exclusive seismic data will not form part of the work program, but any interpretation of that data will be taken into account in assessing the merits of the work. Significant appraisal works over any previous petroleum discoveries within the area. Past exploration performance history. Applicant’s engagement of local employment and or community, including Indigenous employment. In summary, a minimum acceptable work program should include (but not be limited to) the following: Years 1 - 2 substantial geophysical (seismic, magneto-telluric, gravity or magnetic) exploration activity, either aerial or ground; Year 3 - more extensive seismic that leads to drilling a well/wells – including a well; Year 4 - exploration/appraisal drilling of well/wells; Year 5 - geological analysis to firm up; identify prospective areas of the tenure for consideration of detailed assessment, pilot-production, production, tenure renewal and or relinquishment of land area. Granted Permits Upon grant, titleholders must undertake each component of the work program in the permit area(s) within the prescribed year. If a titleholder has more than one permit (non-contiguous), expenditure in one permit cannot be substituted for expenditure in another unless it can be proven that the program will expedite exploration that is beneficial to both areas. Proposed work commitment expenditure must be spent within each permit as indicated in the initial work program. Failure to complete the work program commitments especially on the minimum guaranteed first two (2) years may result in the commencement of permit cancellation proceedings and will impact on the considerations for renewal of tenure, waiver applications, suspension of work program applications etc. Failure to observe requirements for timely submission of data, including annual reports to Northern Territory Geological Survey is also to be taken into consideration. 7. Availability of Data A special data package is available from Northern Territory Geological Survey. 7.1 Release Area EPNT14-1 Data relevant to permit release area EPNT14-1 will be supplied on a memory card and will include McArthur Basin seismic support data, McArthur Basin wells data, relevant legislation and application/assessment guidelines, regional geological data, Northern Territory geophysics and, Northern Territory GIS data (including release area GIS files). Seismic surveys can be requested from the Northern Territory Geological Survey InfoCentre but will be supplied by our storage facility in Perth, incurring a small fee. 7.2 Release Area EPNT14-2 will be supplied on a memory card and will include Amadeus Basin seismic support data, Amadeus Basin wells data, relevant legislation and application/assessment guidelines, regional geological data, Northern Territory geophysics and, Northern Territory GIS data (including release area GIS files). Data relevant to permit release area EPNT14-2 Seismic surveys can be requested from the Northern Territory Geological Survey InfoCentre but will be supplied by our storage facility in Perth, incurring a small fee. Page 11 of 12 8. Special Requirements and Additional Information Successful applicants will be required to consider Aboriginal Sacred Sites, Heritage and Environment matters before commencement of any operation. 8.1 Native Title Act (Cwlth) Successful applicants will be required to progress their applications through the ‘right to negotiate’ process of the Native Title Act. 9. Closing Dates and Lodgement of Applications The closing date for applications for EPNT14-1 and EPNT14-2 is 4:00 pm, Friday 12 December 2014. Applications together with supporting data should be submitted to the following postal address: Executive Director, Energy Energy Directorate Department of Mines and Energy GPO Box 4550 DARWIN NT 0801 The following special instructions should be observed: Two copies of the application and supporting data, together with the applicable fee, should be enclosed in an envelope or package. The application should then be sealed and clearly marked as “Application for EPNT14-1 or EPNT14-2 – Commercial-in-Confidence”. This envelope or package should then be enclosed in a plain covering envelope or package and delivered by hand or posted to the address above. 10. Contact Officers Victoria Jackson Executive Director, Energy Energy Directorate E: victoria.jackson@nt.gov.au P: 08 8999 6030 Annette Duncan Director of Energy Titles Energy Directorate E: Annette.duncan@nt.gov.au P: 08 8999 5357 Gina Graham Petroleum Registrar Energy Directorate E: gina.graham@nt.gov.au P: 08 8999 7112 Dr Ben McNeil Petroleum Data Manager Northern Territory Geological Survey E: ben.mcneil@nt.gov.au P: 08 8999 5149 Page 12 of 12