THE recently released national map of petroleum permits shows something big happening in the Top End.
The Northern Territory is suddenly wall-to-wall with permits either granted or under application.
Permits cover almost 90% of the Territory, up from just less than 50% only 18 months ago.
It is not just areas under application. Granted permits have increased by 30% over the past three years, according to NT Department of Resources director of energy Alan Holland.
What is striking about the stampede for acreage in the NT is the way permits are jammed up against every state border.
Permits are even sitting over areas where some geologists would swear there is nothing but granites and basement rocks. What is going on?
Three big factors are at work, beginning with the rush for shale gas.
Holland said the main push had been for unconventional gas targets but most applications were also made with conventional oil and/or gas in mind.
“The focus of applications has been in the southern Georgina Basin, Amadeus Basin, McArthur Basin [Beetaloo Sub-basin] and Pedirka Basin,” he said.
“These basins all have confirmed shale targets and now being actively explored.
The rush for acreage in the NT began almost a decade ago with Central Petroleum when it acquired vast areas over the Amadeus and Pedirka Basins.
This was based on a proudly counter-cyclical strategy targeting oil.
The recent oil discovery at Surprise in the Amadeus Basin has not translated into an acreage rush nearby because Central had already locked up all the prospective acreage.
Entrants will need to negotiate a joint venture if they want to share in the action.
The global boom in unconventional gas and liquids has been a happy coincidence for Central and led to a re-rating of the potential of many of its permits.
Another big mover in the NT’s onshore energy scene is PetroFrontier Corp, focused on the southern Georgina Basin. The Calgary-based explorer is led by Paul Bennett
PetroFrontier this week brought a rig back to MacIntyre-2 in EP 127 to drill a horizontal leg, followed by Owen-3 in EP 104.
The company will then fracture and flow test up to three wells in the second half of this year, in what will be the first use of advanced horizontal drilling and completion techniques in the NT.
Across the NT, the acreage acquisition phase is now drawing to a close. Attention will turn to results from drilling, fracturing and stimulation.
If results live up to expectations, prepare for many more IPOs and big-spending joint ventures based on the NT’s onshore energy potential.
CTP Price at posting:
52.5¢ Sentiment: LT Buy Disclosure: Held
