South Australian Minister for Mineral Resources Development Paul Holloway was present for the signing, which sees the companies working on the gas gathering, processing, transportation and distribution requirements necessary to develop Beach’s shale gas acreage within PEL 218 and ATP 855.

The companies will look at the feasibility of using commercialised discoveries of unconventional gas to fuel a gas-fired power plant.

The MoU also covers Beach’s other conventional but undeveloped contingent Cooper Basin gas resources.

Beach Managing Director Reg Nelson said that the partnership will tap into the Cooper Basin’s long-term potential, advanced engineering techniques such as horizontal drilling and hydraulic fracturing.

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“These initiatives, if brought to commercial fruition, will deliver a whole new energy mantle to the Cooper – extending the region’s natural gas and liquid fuels production for many decades to come,” Mr Nelson said.

PEL 218 and ATP 855 are located within the Nappamerri Trough, and work in the area suggests the potential for a “world-class shale gas resource in the order of tens of trillions of cubic feet”. Beach has booked contingent gas resources of approximately 500 petajoules (PJ) of conventional gas and 1,000 PJ of unconventional gas.

At present, contingent unconventional resources, otherwise known as gas contained within shales and coals, is being targeted at Roseneath, Epsilon and Murteree as well as at the Moomba and Big Lake areas.