Thu 20 Sep 12, 09:21am AEDTBy Caddie BrainCanadian company...

Thu 20 Sep 12, 09:21am AEDT

By Caddie Brain
Canadian company Petrofroniter has received approval from the Northern Territory Government to frack a horizontal well on Tobermorey Station, about 450 kilometres north-east of Alice Springs.

It's the first time a horizontal well has been fracked on an unconventional oil and gas resource in Australia.

Fracking is a controversial method of extraction that uses water, sand and chemicals to break up the rock.

While Petrofrontier was unavailable for an interview, a statement from the Department of Mines and Energy confirms that work is already underway to frack the well in the Georgina Basin.

Executive director of the Northern Territory Cattlemen's Association, Luke Bowen, says his members are now calling on a moratorium on fracking until laws are reviewed.

"It does concern us, and we are calling on a review of the regulations and legislation surrounding it," he said.

"Mining and petroleum are not bound by the existing Water Act.

"We certainly need to be sure that here's going to be no detriment to the above and below ground water resources, for the industry more generally and the people in the region."