Monday 18 Dec, 2017
Overview of Beetaloo Basin

The Beetaloo Basin, located around 500km southeast of Darwin in Australia’s Northern Territory. The basin is a Pre-Cambrian Basin that has more than 3,000 metres of sediment column in which the identification of source rocks has been confirmed on two unconventional oil and gas generating geological formations of the Kyalla and Velkerri Shale. Each source rock is widespread, with thickness of up to 800 metres. There are also indications that high quality conventional reservoirs exist.

 

Beetaloo's Exploration History

In the 1980’s a subsidiary of Rio Tinto drilled 12 wells across the Beetaloo Basin accumulating over 27,000 feet of core data, and these cores, which were subsequently stored in Northern Territory warehouses, represented the basis of independent information for Ryder Scott’s filed Report with Toronto Stock Exchange (www.sedar.com) in May 2010, which estimated a potential resource of the Beetaloo Basin of 17 billion barrels of recoverable oil and 64 TCF of natural gas.

 

The technology to develop these types of unconventional oil and gas deposits throughout the world were not developed until the late 1990’s in the United States, principally in the formations of the Barnett Shale in Texas, and the Pinedale Anticline in Wyoming.

 

Santos and Tamboran drilled Tanumbirini 1 vertical well in EP161 and McManus-1, Altree-2 and Walton-2 also provide convincing evidence of significant volume of moveable hydrocarbons.

 

Pangaea in joint venture with American Energy Partners drilled Birdum Creek #1, Wyworrie #1, Tarlee #1 and Tarlee #2 in EP167 and EP168 and had planned additional horizontal well coverage.

 

Falcon Oil & Gas Australia Limited, a subsidiary of Falcon Oil & Gas Ltd, owns 4 exploration permits EP 98, EP 117, EP 76 and EP 99 in the Beetaloo Basin and drilled a well called Shenandoah-1 on EP 98 in 2011 and with Joint Venture Partner Origin Energy since 2014 drilled Kalala S-1, Beetaloo W-1, Amungee NW-1 and Amungee NW-1H in 2017. Significant gas shows were encountered in the Middle Velkerri Shale and lower Kyalla Shale.

 

Origin submitted the Results of Evaluation of the Discovery and Preliminary Estimate of Petroleum in Place for the Amungee NW-1H Velkerri B Shale Gas Pool to the Northern Territory Government.

Key Details of the Discovery Evaluation Report

Middle Velkerri B Shale Volumetric Estimates



Gross Best Estimate Net Attributable Best Estimate
Area km2 16,145 4,751
OGIP (TCF) 496 146
Combined Recovery / Utilisation Factor 16% 16%
Technically Recoverable Resource (TCF) 85 25
OGIP Concentration (BCF/km2) 31 31

 

In addition, Origin has prepared a contingent gas resource estimate using probabilistic methods and reservoir evaluation data, in addition to regional seismic data.

 

Assessment of 2C Contingent Gas Resource Estimates for the Middle Velkerri B Shale Pool within EP76, EP98 and EP117 as of 15 February, 2017



Measured and Estimated Parameters Units Best Estimate
Area km2 1,968
Original Gas In Place (OGIP) TCF 61.0
Gross Contingent Resource TCF 6.6
Net Contingent Resource TCF 1.94

(Source: Falcon Oil & Gas Australia Pty Ltd)

 

Origin and Falcon have a large-scale development (with up to a 500 well program) planned.

 

Land

The Ministry of Mines and Energy in the Northern Territory is responsible for managing oil and gas operations in the Northern Territory.

 

Regional Infrastructure and Markets

A pipeline corridor, railroad and Stuart Highway run through EP143 to Darwin. Trucking and rail appear to be the first option to transport products. The current pipeline is too small to be of any significant use for the transport of gas.

 

However, once commercial operations have demonstrated the viability of gas reserves, it is anticipated a large pipeline will be laid to Darwin to access the existing LNG facilities and planned projects. Access to market for oil production would be much quicker because road train and railroad to Darwin can transport it. Darwin has a deep-water port capable of handling oil production. Oil could be transported to Singapore refineries for processing.

 

Conoco Phillips’s LNG plant in Darwin Harbour is an exporter of LNG in Darwin. Sufficient supply exists from Bayu-Udan field in the Timor Sea. Inpex and its partner Total, also plan to export LNG. Phase one is estimated at 8 million metric tons of LNG per year. It is estimated the plant will be operational by 2018. This also requires building an 890 km sub-sea pipeline.

 

Another path to market will be the Northern Gas Pipeline (NGP) which will span 622km, between Tennant Creek (just below EP136 and EP143) in the Northern Territory and Mount Isa in Queensland servicing the Eastern States of Australia and overseas markets. The pipeline is due to flow gas in late 2018 and will operate on a rolled-in tariff regime and estimated capacity of Gladstone regional export hub 10 million metric tons per year.

 

Geology

Total Undiscovered and Prospective (Recoverable) Gas Resources in the Beetaloo Basin, Australia

Reservoir Unrisked Undiscovered Gas-In-Place (Tscf) Unrisked Prospective (recoverable) Gas Resources (Tscf)
Low Best High Low Best High
Hayfield (Associated Solution) 0.013 0.025 0.046 0.002 0.004 0.009
Jamison (Associated Solution) 2.041 3.33 5.349 0.313 0.585 1.066
Moroak 0.8 1.437 2.346 0.607 1.048 1.731
Conventional Subtotal 2.85 4.79 7.74 0.92 1.64 2.81
Moroak BCGA 21 29.61 40.85 3.18 4.85 7.23
Bessie Creek BCGA 159.4 210 275 23.8 24.4 49.4
BCGA Subtotal 180.39 239.58 315.81 27.02 39.28 56.64
Lower Kyalla Shale Gas 12.7 15.8 19.2 1.9 2.6 3.5
Middle Velkerrie Shale Gas 94.6 125.1 160.4 14.2 20.4 29
Shale Gas Subtotal 107.3 140.9 179.6 16.1 23 32.5
Total Gas Resources Within The Beetaloo Basin 290.54 385.27 503.16 44.05 63.91 91.94

Ryder Scott


Total Undiscovered and Prospective (Recoverable) Oil Resources in the Beetaloo Basin, Australia

As of May 1, 2010
Reservoir Unrisked Undiscovered Oil-In-Place (Billion stb) Unrisked Prospective' (Recoverable) Oil Resources (Billion stb)
Low Best High Low Best High
Hayfield 0.05 0.09 0.15 0.01 0.01 0.02
Jamison 8.22 11.92 16.4 0.8 1.34 2.15
Conventional Subtotal 8.27 12.01 16.55 0.81 1.35 2.17
Upper Kyalla Shale Oil (Revised) 54.3 10.49 176.5 2.12 4.4 8.1
Lower Kyalla Shale Oil 16.9 37.1 62.2 0.67 1.55 2.85
Middle Velkerri Shale Oil 184.5 241.1 317.2 6.66 10.24 15.33
Unconventional Subtotal 255.7 383.1 555.9 9.45 16.19 26.28
Total Oil Resource Within the Beetaloo Basin 263.97 395.11 572.45 10.26 17.54 28.45

Ryder Scott



X
Location
Prospective
Seismic Section

Stratigraphic Column

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Location of Beetaloo Basin

2,000,000 acres. Two thermally mature, thick source rocks (each~800M). Large unconventional resource. Complex (oil & gas). Large untested structures for conventional resources

 

Prospective based on gravity data

Falcon's interpretation of seismic, geology and gravity.

 

Cut out of seismic section

The cut out of seismic section demonstrates multiple thrust sheets. It is anticipated that this is an over thrust belt that contains the possibility of giant conventional as well as unconventional targets.

 

Gereralised Stratigraphic Column

Recoverable Beetaloo Volumes



Oil Resource in billions of barrels Low Best High
Conventional 0.8 1.3 2.2
Upper and Lower Kyalla 2.8 6.0 11.0
Velkerri 6.7 10.2 15.3
Totals 10.2 17.5 28.4
Gas Resource in Tcf Low Best High
Lower Kyalla 1.9 2.6 3.5
Moroak, Hayfield, Jamison SS 0.9 1.6 2.8
Moroak BCGA 3.2 4.9 7.2
Velkerri 14.2 20.4 29.0
Bessie Creek BCGA 23.8 34.4 49.4
Totals 44.1 63.9 91.4

Ryder Scott 2010

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