Orion Petroleum (OIP)

Shares / Stock Code

OIP

Stock Exchange / Sharemarket

Australian Securities Exchange
Orion Petroleum (OIP) is an oil and gas exploration company that operates within a number of petroleum exploration licences in northern NSW held by Eastern Star Gas Limited (ASX: ESG) or in which ESG had an interest. The company also aims to acquire interest in other petroleum exploration licences with the purpose of engaging in exploration, development and production of oil and/or gas. Orion listed on the Australian Securities Exchange on 12 December 2007 (ASX: OIP) after achieving maximum over subscription as part of its IPO. Petroleum assets acquired from Eastern Star Gas (ESG) formed the basis of the IPO and ESG remains as one of Orion’s major shareholders with a stake of approximately 23%.

Leadership

Orion Petroleum's Board of Directors has extensive experience in the oil and gas exploration and production business.Both Orion's Chairman, Dennis Morton,and its Managing Director, Russell Langusch, have more than 30 years experience each in the international upstream oil and gas industry. Dennis is a geologist who was the founding MD of Eastern Star Gas. Prior to that he held senior management and technical; positions with Bow Valley Resources, Hartogen Energy and Esso Australia. Russell is a petroleum engineer whose career has spanned both the technical and financial sides of the petroleum sector. During the period 2004-08 he was the founding MD of dual ASX and AIM-listed explorer, Elixir Petroleum. He has worked in many technical disciplines for Schlumberger and Esso followed by 17 years in various resources investment banking roles.

Orion Petroleum Company Strategy

The Board's overall strategy is to develop Orion through organic growth by discovering and developing petroleum resources in its licences and by the acquisition of appropriate interests in exploration and/or development opportunities in Australia and overseas. Orion will pursue its drilling program using the funds raised by the IPO and will also seek farm-in participants to contribute to the costs of its exploration program as part of a prudent risk management strategy.

Exploration Strategy

Orion Petroleum will identify, define and drill prospects with the greatest hydrocarbon potential while offering the highest likelihood of success. With a focus on both conventional oil and gas and coal seam gas reservoirs, the drilling schedule will take into account licence work commitments, rig availability and logistical efficiencies. While exploration drilling is high risk, the rewards can be commensurately high. For example, the Toenda prospect, which is a conventional oil play in PEL 6, is a ready-to-drill target with a most likely in-place oil potential of 31 million barrels. Large structures in Orion's Darling Basin licences of northwestern NSW have been identified on seismic to hold exceptional gas potential, possibly in excess of 3 TCF in-place. In addition to this conventional potential, Orion has identified 3.5 TCF of in-place coal seam gas potential in the Company's Surat-Bowen Basin licences in northern NSW.It is important to note, however, that reserves can only be determined after successful formation testing and a full assessment of commercial viability. Orion's portfolio of licences also has the advantage of being reasonably close to existing transport and pipeline infrastructure and this will facilitate commercialisation of petroleum that we discover and the subsequent marketing and transporting of oil and gas.

Orion Petroleum (OIP) Products and Services

  • Oil and gas explorer

Orion Petroleum (OIP) Locations and Subsidiaries

Orion Petroleum Head Office Suite 303, Level 3, 10 Bridge Street, SYDNEY, NSW, AUSTRALIA, 2000 Phone: 61 2 9254 9000 Fax: 61 2 9252 0255

Orion Petroleum (OIP) Share Price

Submitted by ASX Listed Company on 15 May, 2010 - 21:39

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