According to GlobalData’s Upstream Analyst for Asia-Pacific Jonathan Lacouture, the stage seems set for commercially viable unconventional resource development in Australia. This is due to the country’s significant technical shale and tight gas resource estimates, its well-developed onshore upstream sector, and substantial capital investment in frontier basins.
However, disappointing results from recent exploration and production (E&P) activities has cast doubt over unconventional operations in Australia. For example, ConocoPhillips and PetroChina left their positions in the Canning Basin in October this year, after recent test wells performed below expectations.
Lacouture says: “The real keystone that Australia needs to fuel unconventional development is a liquids-rich play. Additional production from Santos and Beach Energy in the Cooper Basin, and from AWE Energy in the Perth Basin, is scheduled for 2015, but the vast majority of this resource volume is natural gas.
“On the other hand, there is a strong possibility of shale oil production from platform structures in the Canning Basin, which lie on the flank of the Fitzroy Trough. Despite the exodus of ConocoPhillips and PetroChina from the area, heavyweights Mitsubishi and Apache have continued exploration activities through a joint venture with domestic operator Buru Energy.”?
Lacouture added that the primary liquids target in the Canning Basin is the Goldwyer Formation, which some operators have compared geologically to the resource-rich Utica, Marcellus and Bakken shales in the US.