Minister Marmion Welcomes Canning Basin Deal (Australia)

Mines and Petroleum Minister Bill Marmion has welcomed Apache Energy’s decision to farm-in to several petroleum titles in the Canning Basin, which are estimated to hold significant oil and natural gas resources.

The Minister said the announcement by Canning Basin joint venture partners, Buru Energy and Mitsubishi, was a positive step towards further exploration in the remote area.

“The Canning Basin is considered to hold significant natural gas from shale, which to date remain largely under-explored due to the remote location of the basin,” Marmion said.

“Further exploration of these areas is key to confirming these resources which could potentially secure our State’s energy security for many decades to come.”

Apache Energy, which is a major supplier of domestic gas to Western Australia, will earn 50 per cent interest in exploration permits 390, 471 and 473, and up to a 50 per cent interest in exploration permit 438 by funding a $25million exploration program in 2014.

With Australia estimated to contain the world’s seventh largest natural gas from shale, Apache Energy’s onshore exploration investment is an exciting development for Western Australia’s oil and gas industry.

“Production of natural gas from shale in the United States over the past 10 years has created millions of jobs, reduced their carbon emissions and revitalised their economy and manufacturing industries,” the Minister said.

“We have an opportunity here in Western Australia to reap those same benefits on a scale relevant to our State, while maintaining the highest environmental standards.”

Fact File

• The Canning Basin is estimated to contain 235 trillion cubic feet of natural gas from shale – equivalent to almost 500 years of domestic gas supply based on current consumption levels
• Natural gas from shale is currently in the early exploration phase with production in the Canning Basin estimated to be five to 10 years away
• In 2012, WA’s petroleum industry was valued at $24.4b

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LNG World News Staff, November 04, 2013; Image: New Standard EnergyFollow LNG World News via: