Australia: Blue Energy Plans to Start with Maryborough Basin Gas Exploration this Year

Blue Energy is currently earning a 75% interest (from Adelaide Energy Limited “ADE”) in these three Maryborough Basin permits (see Figure 1) by conducting a farm in work program in the permits. Blue Energy has executed Native Title  Agreements on behalf of the joint venture with traditional owner representatives of these areas in order to facilitate the grant of ATP674A and ATP733A.

Environmental Authorities for these two application areas have been issued by the Qld Government and the joint venture is awaiting permit grant by the Government. The three permits will cover an area of 2,940km2 (726,486 acres).

Blue Energy and ADE intend to conduct gas exploration activities in the Maryborough Basin permits (once all are granted) and are planning to commence this year, targeting coal seam gas, shale gas, and conventional gas potential within the  area. Given the location to the south of Gladstone, gas resources that are discovered in these permits will be ideally suited for both domestic and export gas markets.

A recent analysis of global shale gas potential released by the US Energy Information Administration (EIA) in April 2011 has identified the Maryborough Basin in Queensland as one of four sedimentary basins in Australia which are currently   assessed to have significant shale gas potential, with a risked recoverable resource figure calculated for the Maryborough Basin of 23 trillion cubic feet (TCF). The EIA paper and supporting report by Advanced Resources International reviewed 48 sedimentary basins in 32 countries (see https://www.eia.gov/analysis/studies/worldshalegas/ for the full report). The report notes that “Australia has major gas shale potential in four main assessed basins…. With geologic and industry conditions resembling those of the USA and Canada, the country appears poised to commercialize its gas shale resources on a large scale. Other prospective shale basins in Australia include the small, scarcely explored Maryborough Basin in  coastal Queensland, which contains prospective Cretaceous-age marine shales that are over-pressured and appear gas saturated.“

Previous drilling activity in the Maryborough Basin, conducted between 1953 and 2003 targeting conventional gas, established a valid shale gas target in the Cretaceous-aged Maryborough Formation.

Blue Energy and ADE will further assess over the coming months the potential of the shale gas target, in conjunction with coal seam gas and conventional gas targets, with a view to determining a possible drilling location. The type of activity  envisaged to be conducted by the joint venture at this early stage of exploration in the Maryborough Basin will be similar to those gas exploration activities which have been undertaken in the permit area by previous Operators. Normal  groundwater and environmental studies together with a consultation process will be conducted ahead of any on ground activity.

[mappress]
Source:Blue Energy , July 6, 2011;