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extract AFR today (they neglect to mention just who owns the...

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    extract AFR today

    (they neglect to mention just who owns the pipeline from Longtom to Orbost )
    what they also fail to mention, is that the drill rig they hope to take advantage of, is the one that COE has contracted for Sole and Manta, plus probably the Casino well.

    I am sure that Part of the reason for this media piece, is to try and put pressure on APA and COE to deal with Seven.

    SGH Energy mulls $150m boost to east coast gas push

    Seven Group Holdings' energy business is considering a possible $150 million drilling campaign off the coast of Victoria as part of its bid to use gas from its Longtom field to capture a share of the stretched east coast market.

    Margaret Hall, chief executive of SGH Energy, said she wants to take advantage of drilling planned by other companies in 2018-2019 to use equipment already due to be brought into the region to drill wells at the Longtom field and an exploration prospect nearby.

    Success at the three wells could add up to 190 petajoules of gas to offer into the east coast market alongside the circa 20 PJ available from SGH Energy's mothballed Longtom field, bringing a scale that would also result in lower prices.
    "Price is a really important factor for the buyers, and I suppose for us that comes back to the quantities that we can offer and the cost for us to get the gas to market," Ms Hall said in an interview.

    But SGH Energy still needs to nut out commercial arrangements to allow gas from the Longtom area to reach the market. It is dependent on negotiating with pipeline player APA Group, which has acquired the onshore Orbost gas plant in the Gippsland Basin, to allow Longtom gas to be processed there.

    APA is working on a $250 million upgrade of Orbost to bring it back into production to process gas from Cooper Energy's new Sole project. The gas from Longtom, where production has been suspended since mid-2015, would be brought to market at the same time, in 2019.
    Ms Hall said that gas sales with customers hinge on sealing the deal with APA.

    "Anyone who is buying gas wants to know it will be processed so they can count on that," she said.
    The possible sell-down of a stake in the project ahead of drilling also depends on securing a path to market.

    "Spending up to $150 million or so and making that commitment to those other wells won't be possible until suitable commercial arrangements can be made for the existing gas," Ms Hall said

    "That's not unimportant for us but I can imagine that for an investor coming in it would be an important factor to have in place."

    The drilling would involve the Longtom-5 development well, to access 50-60 PJ of gas, and a "workover" on Longtom-4 to access a further 10 PJ. The exploration prospect, Gemfish, is estimated to hold 100-120 PJ.

    "Those additional volumes give us a number of other options in looking at how all of that gas can be brought to market," she said.

    Meanwhile, the potential for closer links between SGH Energy and Beach Energy, which is 25 per cent owned by Kerry Stokes' Seven Group, has been raised by Beach's $1.6 billion takeover of Origin Energy's oil and gas business, which also operates gas projects off Victoria.
    Ms Hall said that while Beach would be focused on completing and bedding down the acquisition, it "may make sense" later to consider collaborating on drilling or other operations.
 
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