New Standard Energy (ASX: NSE) is focused on oil and gas exploration, and holds a significant land position targeting shale gas in Western Australia.
New Standard Energy Seeks to open Australian shale gas province
New Standard Energy (ASX: NSE) will accelerate the progress of its shale gas exploration acreage in Western Australia's Canning Basin following an internal and external review of the shale gas prospectivity in its exploration acreage.
The company's decision to accelerate shale gas exploration follows encouragement received from ongoing work with New Standard's independent shale gas adviser that supports the view that the Goldwyer formation in New Standard's Canning Basin permits exhibits many of the necessary geological prerequisites for shale gas.
New Standard Managing Director Sam Willis said the decision to accelerate its shale gas exploration project would ensure New Standard Energy was well positioned at the forefront of shale gas exploration in Australia.
“Shale gas is rapidly becoming one of the biggest sources of gas production in the United States, and analysis of New Standard's Canning Basin acreage indicates although early stage, it is highly prospective for shale gas exploration success in Australia,” he said.
"Our decision to accelerate the progress of our shale gas opportunity is the culmination of 12 months research and assessment of shale gas opportunities in New Standard's Canning Basin exploration area, to identify the potential for large resources typical of shale gas plays."
“That preliminary work, undertaken largely since the company secured 100% control of the acreage through corporate transactions last year, has placed New Standard in an enviable position to progress its shale gas exploration program.”
Willis said although shale gas exploration was still relatively new in Australia, shale gas exploration and production was commonplace in the United States, with a recent succession of large, high profile shale gas transactions emerging.
The company estimates that shale gas currently comprises approximately 15% (>2.0 TCF/year) of daily gas consumption in the US, and some analysts predict that unconventional gas production, including shale gas, will comprise as much as half of all total natural gas production in North America by 2020.
A number of analysts predict a similar profile for shale gas may emerge in Europe.
“The enormous growth and success of the industry in the US has spread quickly throughout Europe and in our view it is only a matter of time before Australia follows suit,” Willis said.
