Potential new onshore gas supply may kick-start new industry in WA

Mar 29, 2010

Plans to drill the State’s first shale gas exploration well next month could help create a new industry and provide greater certainty for existing businesses in Western Australia.

Mines and Petroleum Minister Norman Moore said today that Australian oil and gas exploration company AWE planned to drill at the Woodada Deep-1 well, located in the onshore Perth Basin about 100km north of Lancelin near Eneabba.

Mr Moore said core samples from drilling would help identify the gas production potential of the shales.

“The drilling has potential to spark a new industry which may significantly increase WA’s economic growth and enhance its reputation as an international resources hub,” he said.

“Previously considered unviable, shale gas exploration and production is now more prospective due to improved horizontal drilling and fracturing techniques.” 

The Minister said the ability to exploit shale gas resources with new technologies was expected to increase the future gas supply for the United States by a further 100 years.

“I am told that shale gas and its possibilities for industry was the subject of serious discussion at the recent North American Prospect Expo in Houston, the world’s biggest upstream oil and gas conference,” he said.

In its Australian Stock Exchange announcement last month, AWE stated the shale gas potential in the Perth Basin appeared comparable with the successful shale gas fields of North America.  It said:

‘The WA gas market is very attractive in terms of both demand and pricing.  A robust evaluation will take some time but the potential reward is large.’

Mr Moore said if it was found that WA shales had commercial potential, it was possible they could supply the State’s domestic gas market with a new source of cheap, conveniently situated reserves.

“This may be another arrow in WA’s alternative energy sources along with the already available options such as tight gas and geothermal sources,” he said.

Minister's office - 9422 3000 

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