Falcon Oil consultant John Carroll ... more drilling planned
INDUSTRY experts are cautiously optimistic about claims that a gas field nearly five times the size of the Inpex project may have been discovered in the Territory Outback.
Falcon Oil & Gas says that new estimates suggest the Beetaloo Basin — a vast tract of land surrounding Daly River, 600km south of Darwin — holds 19 billion barrels of oil and 63 trillion cubic feet of shale gas.
The Inpex Ichthys field off the north Australian coast has a confirmed resource of 12.8 trillion cubic feet of natural gas.
Canada-based Falcon believes production at Beetaloo could begin in about six years.
The gas would probably be piped to Darwin for processing.
Independent industry sources are not so excited about the latest resource estimates, but are still optimistic.
They said that an analysis by reputable international consultant Ryder Scott showed only "potential undiscovered" oil and gas.
"It's an assessment of what might be there given the knowledge of the geology, but drilling will be required to determine whether these accumulations exist and are recoverable," a source said.
"It should also be stressed that most of the oil and gas is from unconventional targets — oil shale, gas shale and basincentred gas accumulations — which are potentially costly to recover and, therefore, may or may not be viable.
"Hopefully, the estimates will turn out to be right, and there could be a major oil and/or gas discovery in the Beetaloo.
"But, for the time being, these estimates should be treated with (optimistic) caution." Falcon's Beetaloo exploration permits cover nearly 28,200 square kilometres.
Territory-based company consultant John Carroll said the latest resource estimates would be used to raise more cash for drilling.
A drilling operation employing about 20 workers is under way on Hayfield Station, near Dunmarra.
Another is expected next year. Falcon admits that its approach is "unconventional".
"It is based on the theory that the oil and/or gas is dispersed over a large area and is not accumulated in one location.
"Extraction, therefore, requires a number of production wells."
It added: "There is no certainty that any portion of the undiscovered resources will be discovered and that, if discovered, it may not be economically viable or technically feasible to produce any of the resources."
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