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About Netherland Sewell and Associates

Netherland Sewell and Associates provides services to the petroleum industry that include reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services.In March 2012, Netherland Sewell and Associates was acquired by Greyson International. The valuation of Netherland Sewell and Associates was undisclosed. Other terms of the deal were not released.

Netherland Sewell and Associates Headquarter Location

4500 Thanksgiving Tower, 1601 Elm Street Suite 4500

Dallas, Texas, 75201,

United States


Latest Netherland Sewell and Associates News

Blue Energy : December 2020 Quarterly Activities & Cash Flow Report

Jan 29, 2021

01/28/2021 | 05:56pm EST Message : … ESSENTIAL To 31st December 2020 Blue Energy Limited (ASX: "BLU"), is pleased to report on activities during the quarter ended 31 December 2020, across its exploration acreage in Queensland and the Northern Territory in which the Company's key gas and oil projects are located. Key points Blue maintains as a priority, the signing of further gas sale agreements. Progress being made on Queensland environmental approvals for Bowen Production Licence Grant. Queensland Government moving forward with Bowen Pipeline feasibility study. Blue granted additional work program and tenure suspensions in the Northern Territory permits, due to impact of COVID-19 on community access and approval processes. Drilling and testing results in the NT's Beetaloo Basin continue to demonstrate the Basin's potential. Total corporate gas resources position across all held acreage = 4,179 PJ+. Cash position - A$3.25 million as of 31 December 2020. The Company maintains nil debt. Blue Energy signs HoA with Energy Australia During the period under review, Blue Energy executed a non-binding Heads of Agreement with EnergyAustralia for the supply of 100 PJ of gas over 10 years. This is one of the larger domestic gas supply agreements to be struck over the past several years and is a foundation volume for Blue's North Bowen Basin gas project in Queensland. Blue is continuing to pursue additional offtake agreements from its ATP814 tenement. The EnergyAustralia sales volume represents just 3% of Blue's total gas resource in the North Bowen Basin assets, which have been established by the independent reserve and resource specialist, Netherland Sewell and Associates Inc (NSAI). Blue's priority Blue continues to engage with domestic east coast gas buyers to increase the contracted gas volumes from the Company's ATP814 North Bowen Basin permit through additional gas supply agreements. 1 … ESSENTIAL Progress on Environmental approvals for Bowen Production Licences Blue Energy is currently finalising with SLR Consulting, an Environmental Approval Plan for PLA1034, PLA1038 and PLA1045. Once finalised, Blue Energy will begin the required site environmental monitoring work to underpin the application for site specific Environmental Authorities (as required by the Queensland Government for the granting of the PLs). Environmental monitoring will be required throughout the calendar year, with completed EA applications expected by Q4 2021. Once submitted, the approval process by the Qld Government can take up to 12 months. Queensland Government moving forward with $5 million Bowen Basin Pipeline study The Queensland Government has undertaken an initial consultation process with stakeholders regarding the feasibility of a gas pipeline from the North Bowen Basin to the existing east coast gas infrastructure. The next steps for the Government are likely to be establishing terms of reference or scope for the external resources required to undertake the study, and then seeking Expressions of Interest from external parties to provide that assistance to Government. This is being undertaken by the Queensland Government as the Federal Government also assesses the infrastructure requirements needed to bring gas from the North Bowen (and Galilee and Beetaloo Basins) to the east coast domestic market, in accordance with the findings of the National COVID Coordination Commission's (NCCC) recommendations made to the Prime Minister last year. Northern Territory Activity Recent drilling and testing results by key operators (namely Santos and Origin) in the Beetaloo Basin continue to demonstrate the potential of the Proterozoic rocks in the Beetaloo and Greater McArthur Basins. Blue is moving toward regulatory approval of a regional seismic program in its EP 200, 205 and 207 permits. Regulatory approval processes relating to certification of cultural heritage over the seismic survey area (and conducted by the semi-government body, the Aboriginal Area Protection Authority - AAPA) have been impeded due to COVID remote community access restrictions. This has resulted in Blue applying for and being granted a 12 month suspension of its work program for EP's 200, 205 and 207. It is hoped community engagement activities will be able to be undertaken in the coming dry season. Activity in Proven Basins ATP814 (Blue Energy 100% and Operator) Gas marketing activities, the environmental authority approval process and native title negotiations continued to be the main tasks undertaken in the quarter for the ATPP814 permit. In particular, this included the progression of Production Licence Applications PL 1034, 1036 and 1045. As noted, Blue Energy executed during the quarter, a non-binding Heads of Agreement (HoA) with EnergyAustralia for the supply of 10 PJ of gas per annum for 10 years (ie a total 100PJ contract volume). Additional long term gas supply agreements with other domestic gas users are being 2 … ESSENTIAL sought to underpin the development of Blue Energy's Bowen gas resources for the domestic gas market. The high grading of the Basin by both the Federal and Queensland Governments as a new gas supply source for the east coast and therefore, the potential for new infrastructure connecting the Bowen Basin to the Wallumbilla gas hub, gives added confidence to gas buyers that there will be support for the development of the Basin-wide 15,000 PJ resource to proceed. To date, Blue has had positive responses from large and small east coast buyers. Blue is seeking to agree conditional offtake agreements with major customers that could ultimately support the development of a large-scale Bowen Basin gas project which supplies gas to the Wallumbilla hub. As outlined earlier, work is continuing on Production Licence Applications in the permit (PL 1034, 1038 and 1045) with Blue continuing the necessary environmental studies to be lodged with respective Environmental Authority Applications for grant of the Production Licence application. Figure 1: ATP814 Bowen Basin Queensland showing granted PCA's together with existing PL applications and the NQGP gas pipeline to Townsville and the major High Voltage electricity transmission line between Gladstone and Townsville. As has been previously announced to the market, ATP814 currently has 2P reserves of 71 PJ+ and 3P reserves of 298 PJ+ (as independently estimated by Netherland, Sewell and Associates (NSAI)). There is also significant upside within the constituent blocks comprising the Permit with a combined 3,248 PJ+ of Contingent Resources in all Blue's ATP814 PCA's, estimated by NSAI. There is also additional upside in the Prospective Resources category in the ATP814 permit of approximately 2,000 PJ of gas in place. 3 … ESSENTIAL ATP854 (Blue Energy 100% and Operator) ATP854 contains 103 PJ+ of Contingent Resources and Blue has lodged Potential Commercial Area Applications (PCA's) over the Permit with the Queensland Government to secure these resources. Award of these PCA's will allow work to be undertaken to grow the gas reserve and resource base in parallel with the continued marketing of the gas resources to potential buyers and in the context of existing and proposed pipeline infrastructure (see Figure 2). Figure 2: Pipeline routes impacting ATP854, ATP813 and ATP814 Activity in Emerging Basins (Various permits and equities levels - Blue Energy Operator - See Figure 3) Blue was granted a further 12-month suspension of its work programs for its current granted permits (EP 200, 205 and 207) in the Northern Territory. The lengthy delays experienced due to the impact of COVID-19 on matters such as remote community access, have severely impeded the work of the specific regulatory bodies (Aboriginal Area Protection Authority cultural heritage certification for our proposed 2D seismic program) on approval processes needed prior to on- ground activity. Blue continues its re-engagement process with the Aboriginal Land Councils, Traditional Owners land owners, government departments and other community stakeholders on the outstanding application areas as part of the process to establish a community licence, which is required under the new approval process. 4 … ESSENTIAL Galilee Basin (Queensland) ATP813 (Blue Energy 100% and Operator) The PCA applications lodged by Blue with the Queensland Government remain on foot. The on- ground activity conducted by Blue Energy to date has resulted in the delineation of 838 PJ+ (net to Blue Energy) of Contingent gas resources within the Betts Creek CSG play in ATP813 (as assessed by Netherland Sewell and Associates Inc). A further 1,956 PJ++ of Prospective Resource (gas in place) is identified in the permit by Netherland and Sewell. In adjacent activity to Blue's ATP813, Galilee Energy continues to operate the Glenaras Coal Seam Gas production test pilot (in ATP2019). Success will provide proof-of-concept for the Galilee Basin CSG play and give confidence for Blue to conduct appraisal activities on its gas discoveries (830 PJ)+ already recorded in ATP813, once the PCA's are granted by the Queensland Government. Corporate +Listing Rule 5.42 Disclosure The estimates of reserves and contingent resources noted throughout this Quarterly Activities report have been provided by Mr John Hattner of Netherland, Sewell and Associates Inc (NSAI) and were originally reported in the Company's market announcements 25 January 2012, 26 February 2013, 19 March 2013, 8 December 2015 and 28 February 2019. NSAI independently regularly reviews the Company's Reserves and Contingent Resources. Mr Hattner is a full time employee of NSAI, has over 30 years' of industry experience and 20 years' of experience in reserve estimation, is a licensed geologist and a member of the Society of Petroleum Engineers (SPE), and has consented to the use of the information presented herein. The estimates in the reports by Mr Hattner have been prepared in accordance with the definitions and guidelines set forth in the 2007 Petroleum and Resource Management System (PRMS) approved by the SPE, utilizing a deterministic methodology. Blue Energy confirms that it is not aware of any new information or data that materially affects the information included in any of the announcements relating to ATP 813, 814 or 854 referred to in this report and that all of the material assumptions and technical parameters underpinning the estimates in the announcements continue to apply and have not materially changed. Listing Rule 5.28.2: The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. 6 *Exploration blocks Blue is farming into Note 1: Subject to Farm in Agreement which upon completion of the seismic work program will result in Blue Interest becoming a 50% equity participant 7 … ESSENTIAL Global Energy Commentary The US Energy Information Administration is forecasting a resurgence of growth in global oil demand based on continued opening up of economies post COVID and a better balance of supply and demand as OPEC+ production cuts rebalance inventories, and consumption continues to improve. (Figure 4 and 5). Clearly this is dependent on bringing the second COVID wave under control with the widespread roll out of an effective vaccine, and the subsequent improvement of travel and trade related oil demand. Figure 4: EIA Supply and Demand forecast as of January 2021. Source: EIA Whilst the Chinese economy seemed to be rebounding strongly in the latter half of calendar 2020, a resurgence of COVID outbreaks in China in January this year in and around Beijing may stunt that recovery and therefore Chinese oil demand may be impacted. This demand recovery may be as volatile as the COVID case numbers. 8 … ESSENTIAL Figure 5: Forecast global liquids consumption and breakdown. Source: EIA The change in administration in the United States may also have an impact on oil supply as available Federal land and lease sale processes appear to be in the sights of the new Biden administration together with federal environmental approvals for drilling. The DUC (drilled uncompleted) well inventory in the US will be an important metric to monitor. Drilling activity will be adversely impacted, further disrupting supply of both oil and associated gas. This may well have a price effect on WTI, which had recently been appreciating on the back of announced OPEC+ cuts. Figure 6: Brent crude oil price and forecast. Source: EIA 9 … ESSENTIAL Whilst LNG prices have generally been suppressed most of the year as a result of linkage to oil price and lower economic output, early 2021 spot prices showed a very large spike in response to a cold northern hemisphere winter plus a relatively unappreciated reduction in supply capacity due to lack of CAPEX on new projects. The ACCC's LNG Netback pricing series at Wallumbilla had shown (Figure 7) a significant recovery in recent months, from a low of A$2.44/Gj in June to A$5.71 /Gj (US$4/Gj) for November 2020 and was forecasting $6-7/Gj for January 2021 and an average price of $6/Gj for the 2021 year. However, as described above, a large spike on the JKM spot price was observed early in January, where a price of US$32.49/mmbtu was achieved. This left a Wallumbilla netback calculation of nearly A$40/GJ, well above the daily Wallumbilla traded gas price of A$6.50/GJ. Whilst LNG spot prices are typically seasonal with prices rising in the Autumn shoulder as temperatures fall with the start of the northern winter, such a meteoric JKM price is unprecedented based on seasonal factors alone. (Figure 7). Of significant domestic relevance is the agreement struck between the three Curtis Island LNG exporters and the Federal Government, to extend for a further 2 years, the requirement (under the ADGSM) for surplus LNG cargoes (spot) in Curtis Island to be diverted into the domestic gas market should it be required, but at international prices. This news last week riled domestic gas users and some labour unions who have been lobbying the Federal Government heavily for domestic gas reservation and price control for domestic gas. . By Authority of the Board per: John Phillips

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