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Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Exploring the Beetaloo: will Australia’s first viable shale play be sourced by billion year old gas?

David Close A B , Alexander Côté A , Elizabeth Baruch A , Carl Altmann A , Faiz Mohinudeen A , Brenton Richards A , Rachael Ilett A , Ross Evans A and Stephanie Stonier A
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A Origin Energy, GPO Box 148, Brisbane, Qld 4000, Australia.

B Corresponding author. Email: david.close@originenergy.com.au

The APPEA Journal 57(2) 716-721 https://doi.org/10.1071/AJ16054
Accepted: 20 March 2017   Published: 29 May 2017

Abstract

Origin Energy completed exploration campaigns in 2015 and 2016 in the Beetaloo Sub-basin of the Greater McArthur Basin in the Northern Territory, drilling three vertical wells and one horizontal well. These wells have provided a wealth of technical data to assist in the characterisation of the primary source rock reservoirs or ‘shale gas’ plays in the Basin – the Velkerri Formation Play and the Kyalla Formation Play. In this paper we demonstrate the presence of thick, gas saturated and over-pressured source rocks across the sub-basin. In addition to the drilling campaign, the multi-stage hydraulic fracture stimulation of the Amungee NW-1H horizontal well was completed in 2016 – this operation was unique as it represents the first horizontal stimulation operation in the Beetaloo Sub-basin and the longest ‘plug and perf’ type horizontal completion in Australia. Data from the extended production test of the Amungee NW-1H are critical from a technical and, potentially, economic and political perspective.

In addition to the technical work program, Origin has undertaken preliminary environmental baseline studies and substantial stakeholder engagement. Ensuring environmental baseline data are available is key to demonstrating that onshore gas developments can be undertaken without adverse environmental outcomes, and also for gaining social acceptance. However, data and facts alone are not sufficient to build community confidence. Origin has engaged extensively with pastoralists, local communities and Traditional Owners to build direct relationships and partnerships that encourage acceptance of the gas industry’s ability to coexist and deliver mutual benefits to the businesses and communities of the Barkly region and the Northern Territory more broadly.

Keywords: Beetaloo Sub-basin, discovery, Mesoproterozoic, middle Velkerri, Northern Territory, Proterozoic, shale gas, stimulation, unconventional gas, Velkerri Formation.

Dr David Close is currently the Unconventional Exploration Manager and Chief Geologist for Origin Energy in Brisbane, Australia. He holds a PhD from the University of Oxford, where he studied as a Rhodes Scholar, and a BSc from the University of Tasmania. David worked in Mexico, USA and Canada for Schlumberger and Apache Canada before joining Origin. David has worked in a range of conventional and unconventional exploration roles and has developed expertise in unconventional resource exploration and evaluation, and quantitative seismic interpretation. David is a member of PESA, ASEG, SEG and AAPG.

Alexander Côté is a Senior Petroleum Engineer for Origin Energy in Brisbane, Australia. He is a CFA Charterholder, a Professional Engineer (PEng) registered with the Association of Professional Engineers and Geoscientists of Alberta, and holds a BASc with Distinction in Mechanical Engineering from Western University (Canada). Alexander worked in Canada for Talisman Energy on a range of tight gas and shale gas assets including the Deep Basin and the Montney. He has developed expertise in unconventional resource exploration, evaluation and development. Alexander is a member of SPE.

Elizabeth Baruch is an Exploration Geologist for Origin Energy in Brisbane, Australia. She received her BSc in Geophysical Engineering from Simon Bolivar University (Venezuela), MSc in Geology from the University of Oklahoma and is currently a PhD candidate in the School of Physical Sciences at the University of Adelaide. Elizabeth worked for ConocoPhillips Co. in Houston before joining Origin. Elizabeth has worked in unconventional exploration roles with expertise in shale gas, shale diagenesis, and sedimentology.

Carl Altmann is currently an Exploration Geologist for Origin Energy in Brisbane, Australia. He received his BSc in Geology, Geophysics and Environmental Geoscience from Adelaide University and his Honours degree in Petroleum Geoscience from the Australian School of Petroleum. Carl is a member of AAPG and SPE.

Faiz Mohinudeen is currently a Principal Geoscientist at Origin Energy in Brisbane, Australia. He holds a PhD (1993) and MSc (1990) from the University of Wollongong (NSW, Australia) and a BSc from University of Peradeniya (Sri Lanka) (1984). Faiz has been working for over 30 years both as a geologist and a research scientist for hydrocarbon and ground water exploration. His current role involves providing organic geochemistry and coal seam gas expertise to Origin’s conventional and unconventional hydrocarbon projects. Faiz is a member of AAPG, ICCP and PESA.

Brenton Richards is a Senior Geologist with Origin Energy in Brisbane, Australia. He has worked for numerous Australian operators on a range of conventional and unconventional oil and gas exploration, appraisal and development projects across Australia and New Zealand. Brenton received his BSc from the Queensland University of Technology.

Rachael Ilett is a Geologist and Petrophysical specialist with Origin Energy in Brisbane, Australia. Rachael has experience in exploration, appraisal and development projects and has worked across a wide range of assets across Australia and New Zealand, both conventional and unconventional. Rachael received a BSc (Hons) from the Queensland University of Technology and is a member of FESAus, SPWLA, GSA and PESA.

Ross Evans is currently the General Manager of Exploration and New Resources for Origin Energy in Brisbane, Australia. Ross has 20 years’ experience in the oil and gas industry and has worked in many different facets of the industry including upstream exploration, appraisal and development planning projects and successful APLNG CSG to LNG projects from pre-FID through to completion. Ross holds a BE (Hons I) in Mechanical Engineering, MSc in Process Engineering and a Masters in Business Administration. Ross is a member of SPE and QUPEX.

Stephanie Stonier is Corporate Affairs Manager (Northern Australia) supporting Origin’s onshore and offshore exploration assets in the Northern Territory and Western Australia. A specialist in social performance – aligning company interests with multiple stakeholder interests – including government, Traditional Owners and landholders, Stephanie is responsible and accountable for developing and implementing strategies that supporting growth and regional development in regions where Origin operates and/or explores.


References

Close, D. (2015). Why the wait? Shale gas exploration review and look ahead. In ‘APPEA Conference and Exhibition, Melbourne, 17–20 May 2015’.

Close, D. (2016). Unconventional gas potential in the Northern Territory, Australia: exploring the Beetaloo Sub Basin. In ‘AAPG Annual Convention and Exhibition, Calgary, 19–22 June 2016’.

Jarvie, D. M. (2012). Shale resource systems for oil and gas. Part 1 – Shale-gas resource systems. In ‘Shale Reservoirs – Giant Resources for the 21st Century’. (Ed. J.A. Breyer.) AAPG Memoir 97, pp. 69–87. (AAPG.)

Origin Energy Limited (2017). Beetaloo Basin drilling results indicate material gas resource. ASX/Media Release, 15 February 2017. Available at http://www.asx.com.au/asxpdf/20170215/pdf/43g0qhh87j71bb.pdf [Verified 27 March 2017].