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A GAS field potentially five times the size of Inpex’s Browse Basin — which could create 6300 jobs — has been identified in the Territory.
The results, revealed by Origin Energy, mean potential royalties from onshore gas could clear the $875 million NT deficit and underpin the economy for multiple decades.
But the Beetaloo Basin, which is about 500km southeast of Darwin, cannot be developed due to the Gunner Government’s moratorium on hydraulic fracturing.
Chief Minister Michael Gunner said Wednesday the moratorium would stay until the inquiry into hydraulic fracturing is complete.
“We have imposed a moratorium on fracking until an independent, expert panel led by Justice Rachel Pepper completes its investigation,” he said. “After we receive the panel’s findings we will either ban fracking completely or allow it in highly-regulated, tightly prescribed areas.”
Origin integrated gas chief executive officer David Baldwin said the company had submitted its findings from drilling and seismic results across more than 10,000 sq km and production data from the Amungee drill site to the Territory Government. Origin started its testing before the moratorium on hydraulic fracturing was put in place.
The Amungee well was tested at 2.1km depth with 11 horizontal fracture stimulation stages across a 600m area. Over a 57-day period it returned an average of 1.1 million cubic feet of gas per day.
Deloitte Access Economics found onshore shale gas production has the potential to drive significant economic growth in the Territory including a $961 million increase in government revenues and the creation of up to 6300 jobs.
Origin’s report estimates the original gas in place is 61 trillion cubic feet across a 1,698 sq km area with a contingent resource of 6.6Tcf. This towers over the Mereenie gas fields in Central Australia which have produced 240 billion cubic feet of gas since 1984.
Origin’s joint venture partners Falcon Oil and Gas were more robust about the find issuing a statement to the Irish stock exchange indicating the original gas in place was 146Tcf. Inpex’s Ichthys field is estimated to contain more than 12 trillion cubic feet of gas. The NT does not gain any gas royalties from the Inpex project because it is offshore.
“The Beetaloo Basin is the Territory’s most prospective onshore basin for unconventional gas and our test results further confirm the region’s outstanding shale gas potential,” Mr Baldwin said.
“Further exploration and appraisal activity will be required to progress our understanding of the play and mature contingent of resources to reserves.”
The Chamber of Commerce NT acting-chief executive Brian O’Gallagher has called on the Gunner Government to get on with making a decision on hydraulic fracturing. “We don’t want this to be a missed opportunity,” he said.
“We’d like to see a sustainable onshore gas industry which along with Defence could underpin the entire Northern Territory economy.”
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