MTA-AUS 2014

CONEXPO-CON/AGG VIP SHOW GUIDE contains Floor Plans and a complete listing of companies exhibiting at the ConExpo-Con/Agg 2014 trade show in Las Vegas March 3-7, 2014. It also contains 2014 forecasts for the Aggregate, Concrete and Cement industries

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6 MINING & TECHNOLOGY AUSTRALIA 2014 | ISSUE 8 UPFRONT by domestic companies like Beach Energy, DrillSearch, AWE, Central Petroleum, Strike Energy and New Standard Energy, at the same time that companies like Orca & Origin have moved to rapidly sign up South Australian supplies even before they materialize. The South Australian Government says there are at least nine unconventional gas plays being explored by more than 20 joint ventures in the state and that nearly all of the State's prospective acreage is now covered by 70 Petroleum Exploration Licences- meaning there's precious litle room left for any new applications. In tandem with rising prices and shortages it suggests the Coopper Basin is likely to see a lot more investment maneuvering in the next few years. One company that's been here for a while and has seen its share price perform strongly all year on the back of a string of upbeat news is oil and gas producer, Beach Energy. Not only is it a 20 percent partner with Santos and Origin Energy in the Moomba well as part of their South Australian Cooper Basin Joint Venture, but the company picked up $349 million in backing from American energy giant, Chevron, for up to 60 percent of its other shale gas assets. Adelaide-based Beach produced a record 9.6 million barrels of oil equivalent for fnancial year 2013-14, up 20 per cent on the previous year. Beach has said it intends to spend $450-$500 million on exploration and development this fnancial year as the two companies explore two felds in South Australia and Queensland that are thought to hold several hundred trillion cubic feet of gas-100 trillion cubic feet of which is recoverable using existing technology like vertical or horizontal drilling and hydraulic fracture stimulation. In fact Beach has now completed some horizontal drilling in its South Australian permit, a milestone that's been promised by a number of companies for a while and is key to geting the gas out of the ground in commercial quantities. Senex is another company that's also basking in some share market glow after announcing a big new Cooper Basin tight gas discovery in April at the 'Hornet-1' well and indicating at the time that the gas was fowing to the surface at a rate of over two million cubic feet a day. It's also announced a 15-year licence from the South Australian Government for exclusive rights to 10,000 square kilometers in the Cooper-Eromanga Basin that the company says it's commiting $200 million to developing over the next fve years. "We're still evaluating all our options at Hornet and the adjacent Kingston Rule well, but we've established the gas is there, that it's mobile and is close to infrastructure," Andrew Barber, Senex's Corporate Afairs Manager, said. "The new licence scheme is another signifcant step for both us and the South Australian Government as it means long term, secure tenure that provides a great basis for investment and development, especially for the domestic market as demand builds to 2017." Go with the fow DESPITE THE RUSH TO FIND THE GAS, costs and price remain formidable barriers. According to the ACLA report domestic gas prices would have to be around $9 a gigajoule to make the industry viable, a target that's already in sight as the Liquid Natural Gas exports in Queensland gear up, and restrictions on coal seam gas developments in NSW and Victoria look like remaining in place. "Gas developments are capital intensive and generally done on a joint venture basis so we'll introduce a partner when the time is right."

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