Beruflich Dokumente
Kultur Dokumente
Contents
Introduction 2
Key points 3
Australian Unconventional Gas Reserves/Resources 4
Scope and assumptions 4
Definitions 4
SPE PRMS 5
Rate decline in unconventional wells 6
Resource potential by jurisdiction 8
General references 9
Summaries:
Queensland 10
New South Wales 18
Victoria 21
Tasmania 23
South Australia 24
Western Australia 28
Northern Territory 31
Offshore areas 33
Introduction
This report updates the 2013 report produced for the former
Standing Council on Energy and Resources (SCER; now COAG
Energy Council).
Key points
UNRECOVERABLE
(
P
I
I
P
)
NOTE: Not all jurisdictions have reported volumes for each category so totals may
not be indicative of the distribution of resources across each category
Table 1.1: Australian unconventional resources
This report covers potential for tight oil and gas, shale oil and gas and
CSG sourced from publicly available data published by operating
companies, States authorities and other reporting bodies.
Definitions
Under assessment The formation is being tested for its ability to produce
commercially
SPE PRMS
UNRECOVERABLE
(
P
I
I
P
)
Table 1.2: PRMS matrix
Unlike conventional gas wells, both shale gas wells and coal seam gas
wells are only connected to the coal or rock immediately surrounding
the well bore or adjacent to any natural or induced fracture network
that may be present. This results in a production profile that is
characterised by an initial period of high production followed by a
steep decline in production rate and a long production tail that may
last for a decade or more. This is caused by initial rapid depletion of
the gas in the fractures followed by slower desorption of gas from the
organic material in the shale or coal as reservoir pressure is lowered
during production. This is shown in the production performance for
Beach Energys Halifax 1 shale gas well in the Cooper Basin.
Source: Beach Energy press releases
Figure 1.1: Halifax 1 gas production
While not directly comparable, coal seam gas wells follow a similar
production profile to shale gas wells after an initial period of
dewatering. This is illustrated in the figures below:
Figures B and C show wells where the gas production has reached a
peak and is now declining; to 60 per cent of peak after one year in
Figure B (from the Bowen Basin) and to 30 per cent of peak after four
years in Figure C.
General references
ACOLA Report 6 Securing Australias Future Engineering energy:
unconventional gas
Production http://www.acola.org.au/PDF/SAF06FINAL/Final%20Report
%20Engineering%20Energy%20June%202013.pdf
Beach Energy
http://www.beachenergy.com.au/irm/archive/asx-announcements3.aspx
DMITRE South Australia
http://www.petroleum.dmitre.sa.gov.au/__data/assets/pdf_file/0008/179621/Ro
admap_Unconventional_Gas_Projects_SA_12-12-12_web.pdf
Drill, Baby, Drill
http://www.postcarbon.org/reports/DBD-report-FINAL.pdf
EIA/ARI World Shale Gas and Shale Oil Resource Assessment
http://www.eia.gov/analysis/studies/worldshalegas/
Moore, T. A., Coalbed methane: A review, International Journal of Coal
Geology 101 (2012) 36
81
SPE Guidelines for Application of the Petroleum Resources
Management System
http://www.spe.org/industry/docs/PRMS_Guidelines_Nov2011.pdf
SPE Petroleum Resources Management System
http://www.spe.org/industry/docs/Petroleum_Resources_Management_System_
2007.pdf
SPE Petroleum Resources Management System Guide for Non-Technical
Users
http://www.spe.org/industry/docs/PRMS_guide_non_tech.pdf
RFC Ambrian Australian Unconventional Oil & Gas
http://www.armourenergy.com.au/assets/downloads/investment_research/201
3/09-2013_rfc-ambrian_australian-unconventional_oil_and_gas_report_.pdf
Queensland
Reserves/Resources:
UNRECOVERABLE
(
P
I
I
P
)
Source: *Queensland production and reserves statistics as at 31/12/2013,
Queenslands petroleum exploration, development and potential 2012-13,**ACOLA
Report 6 Securing Australias Future Engineering energy: unconventional gas
production (Bowen and Clarence-Moreton shale gas), EIA/ARI World Shale Gas and
Shale Oil Resource Assessment (Maryborough shale gas), Independent Experts
Report for Armour Energy Limited (Mount Isa Superbasin)
Table 2.2: Queensland unconventional resources
Coal seam gas reserves have increased markedly from 2007 as drilling
accelerated to prove up reserves for the LNG projects as shown in the
graph below (1 Tcf is approximately equal to 1000 PJ). Sustained
drilling in the last three years has not seen significant changes in
reserves, except for the QGCLNG project, which booked about 3 Tcf
additional gas reserves in 2013 through its drilling program (Figure
2.1).
Figure 2.1: Queensland reserves growth in coal seam gas for LNG
projects
Production/Forecasts:
The current total annual gas production for the State was about 320 PJ
in 2013 (41 PJ of conventional gas and 280 PJ of coal seam gas, the
equivalent of about 6 MT/a LNG). In contrast, the forecast gas demand
to supply the CSG LNG projects will be about 25 MT/a or almost 1400
PJ/a for a total of 18.5 Tcf (19 400 PJ) of gas. This is shown by contract
in the graph below, compiled from published LNG export volumes. A
portion of the QCLNG gas (top light blue bars) may be sourced
internationally.
Figure 2.2: Contracted volumes by year for Queensland coal seam gas
for LNG projects
High.
Drilling activity has been high, in preparation for LNG exports. The
number of wells drilled per month and the cumulative total of coal
seam gas wells are shown in the graph below.
Figure 2.3: Well drilling rates and cumulative coal seam methane wells
drilled
In order to sustain the high rate of production required for the LNG
projects, an equally high rate of drilling will be required. The graph
below shows the projected drilling for the LNG projects, based on
published data. This by far exceeds all other petroleum related activity
in the State.
Figure 2.4: Historic and proposed cumulative coal seam methane wells
Commentary:
Coal seam methane reserves booked by the three CSG LNG projects
along with contracted LNG volumes are tabulated below. The current
reserves appear to be sufficient to cover the current contracts.
Project Reserves Tcf (PJ)
Contracted volume
Tcf (PJ)
APLNG* 12.6 (13 382) 8.6 (9116)
GLNG# 6.4 (6780) 7.2 (7600)
QCLNG@ 12.4 (13 200) 8.5 (9000)
Arrow 9.9 (10 500) -
Table 2.3: Coal seam gas resources and LNG contracted volumes
*: 2P value, see
http://www.originenergy.com.au/news/files/asx_investor_site_tour_presentation.pdf
#: 2P + 2C value. See http://www.santos.com/library/2014_09_15_%20CLSA
%20presentation.pdf@: Resource estimates from Queensland Department, contract
information from http://www.qgc.com.au/media/239458/bg_fsheet_2013_lng_v2.pdf
@: http://www.qgc.com.au/media/239458/bg_fsheet_2013_lng_v2.pdf
The current reserves for GLNG project may not be adequate to fulfil the
contracts. Over 2 Tcf (2200 PJ) third party gas supplies have been
arranged (Table 2.4).
Quanti Delivery Price
Supplier TJ/day Starts Term
ty point basis
Santos
portfolio Wallumbill
Horizon 750 PJ 140 2015 15 years a Oil-linked
Origin Wallumbill
365 PJ 100 2015 10 years a Oil-linked
Origin Wallumbill
194 PJ1 50-1001 2016 5 years a Oil-linked
Other 7 years
suppliers 10-15 2015 21 Wallumbill
85 PJ 60-100 2016 months a Oil-linked
Meridian Oil-
JV 445 PJ2 20-65 2015 20 years GLNG GTP linked3
Combabul
a/
Spring
Gully 355 PJ4 30-50 2015 30 years Fairview Oil-linked
Table 2.4: Third party gas supplies arrangement for GLNG project
1 100 PJ firm volume over 5 years. Origin has the option to supply additional volumes of up to 94 PJ during
the same period.
2 Source: WestSide Corporation Target Statement of 16 May 2014. Excludes additional gas production by
the Meridian Joint Venture beyond 65 TJ/day. Volumes subject to Meridian field production performance and
implementation of expansion plans.
3 Oil-linked from 2016.
4 Santos share 2P reserves in the APLNG-operated Combabula, Spring Gully and Ramyard fields at the end
of 2013.
The CSG LNG projects have also published projected drilling programs
and these can be combined with the contracted LNG volumes to
estimate a required average production rate per well. These are
tabulated for the three projects below in millions of cubic feet per well
per day.
QUARTE
GLNG APLNG QCLNG TOTAL
R
201 1
4 Q 0.290 0.132
201 2
4 Q 0.275 0.125
201 3
4 Q 0.262 0.119
201 4
4 Q 0.250 0.113
201 1
5 Q 0.115 0.565 0.284
201 2
5 Q 0.217 0.536 0.298
201 3
5 Q 0.412 0.390 0.510 0.453
201 4
5 Q 0.393 0.371 0.486 0.433
201 1
6 Q 0.421 0.433 0.465 0.451
201 2
6 Q 0.403 0.411 0.445 0.433
201 3
6 Q 0.429 0.634 0.427 0.501
201 4
6 Q 0.411 0.605 0.410 0.483
201 1
7 Q 0.435 0.578 0.395 0.476
201 2
7 Q 0.418 0.553 0.380 0.461
201 3
7 Q 0.440 0.531 0.367 0.456
201 4
7 Q 0.425 0.510 0.355 0.442
201 1
8 Q 0.444 0.491 0.343 0.438
201 2
8 Q 0.430 0.473 0.332 0.426
201 3
8 Q 0.416 0.457 0.322 0.415
201 4 0.404 0.441 0.312 0.404
8 Q
201 1
9 Q 0.434 0.427 0.303 0.405
201 2
9 Q 0.421 0.414 0.295 0.395
201 3
9 Q 0.410 0.401 0.287 0.386
201 4
9 Q 0.398 0.389 0.279 0.378
202 1
0 Q 0.388 0.378 0.272 0.370
202 2
0 Q 0.378 0.367 0.265 0.362
202 3
0 Q 0.368 0.357 0.258 0.355
202 4
0 Q 0.359 0.348 0.252 0.348
202 1
1 Q 0.351 0.338 0.246 0.341
202 2
1 Q 0.342 0.328 0.241 0.334
202 3
1 Q 0.335 0.319 0.235 0.328
202 4
1 Q 0.327 0.311 0.230 0.322
202 1
2 Q 0.320 0.302 0.225 0.316
202 2
2 Q 0.313 0.295 0.220 0.311
202 3
2 Q 0.306 0.288 0.216 0.306
202 4
2 Q 0.300 0.281 0.211 0.301
Table 2.5: CSG production rates needed to fulfil LNG contracted
volumes (mmscf/well per day)
The table shows that for the period 3Q 2015 to 1Q 2019, the
production rate will need to be maintained at between 400 000 and
500 000 cubic feet per day per well across all three projects. Within
each project the required peak rate can be even higher. The risk
associated with this may explain the recent gas sharing agreement
between the CSG LNG projects and the connection of the Arrow
resources.
Recently, Origin presented that for wells that have been online for
more than six months, the observed maximum average well production
rates were 2.1 TJ/d per well (equivalent to 2 mmscf/d per well) for the
Talinga project and 1.1 TJ/d (about 1 mmscf/d per well) for the Spring
Gully project, higher than its expectation of 1.2 TJ/d per well on
average of its Phase 1 drilling operation (see link below). These
production rates appear to meet the required rates for the contracted
demand (Table 2.5). For GLNG project, Santos stated that the
performance of Fairview wells continues to exceed expectations with
average optimum gas capacity of 2.2 TJ/day per well. Roma wells are
on line and are dewatering, supporting individual well capacity of 0.5
TJ/day; Roma 02- 04-01 well are producing over 1 TJ/day. All this
information is still limited to the average peak production rates per
well. No longer term sustained production rates are available to us. So,
no definitive statement can be made about the likely long term rate
from coal seam gas production in Queensland although it seems likely
that additional sources of gas may be required to meet contract
commitment. If required, the most probable source of this gas outside
the area of coal seam gas development would be the conventional
resources in the Cooper Basin. This was indicated in the Santos Annual
Report 2012 which stated
To execute the most efficient gas supply for the project, gas will
be sourced from the dedicated CSG fields, underground storage,
supply from Santos portfolio and third parties.
In 2012, 143 wells were drilled in the projects CSG acreage, with
the gas produced supplied to domestic gas contracts and the
remainder injected into underground storage. A further 200 to
300 wells are planned to be drilled each year from 2013 to 2015.
References:
Armour Energy
http://www.armourenergy.com.au/investors/investment-research (7-August-
2013)
Changes in Completion Strategy Unlocks Massive Jurassic Coalbed
Methane Resource Base in
the Surat Basin, Australia, R.L. Johnson, SPE, S. Scott and M.
Herrington, Queensland Gas
Co. Ltd., SPE 101109
Independent Experts Report for Armour Energy Limited
http://www.empireenergy.com/pdf/McArthur%20Basin%20Armour%20Co
%20Ltd%20Ind.%20Geo's%20Report.pdf
Origin APLNG Operational Review and Asset Visit (May 2014)
http://www.originenergy.com.au/news/files/asx_investor_site_tour
_presentation.pdf
BG Groups LNG business:
http://www.qgc.com.au/media/239458/bg_fsheet_2013_lng_v2.pdf
Queenslands petroleum exploration, development and potential 2012-
13
http://mines.industry.qld.gov.au/assets/coal-pdf/queenslands-petroleum-
2014.pdf
Queenslands unconventional petroleum potential
http://mines.industry.qld.gov.au/assets/coal-pdf/qld-unconventional-2014.pdf
Queenslands coal seam gas overview
http://mines.industry.qld.gov.au/assets/coal-pdf/csg-update-2014.pdf
Queensland production and reserves statistics
http://mines.industry.qld.gov.au/mining/production-reserves-statistics.htm
Santos Annual Report 2012
http://www.santos.com/Archive/NewsDetail.aspx?p=121 HYPERLINK
"http://www.santos.com/Archive/NewsDetail.aspx?p=121&id=1367"& HYPERLINK
"http://www.santos.com/Archive/NewsDetail.aspx?p=121&id=1367"id=1367
Santos GLNG contracted resources and well production rates
http://www.santos.com/library/2014_09_15_%20CLSA%20presentation.pdf
(pages 113-14)
Reserves/Resources:
T C PRODUCTION: 3 PJ in 2013
O O
T M
A M
L E
D RESERVES RESERVES RESERVES
R
I 1P: 284 PJ 2P: 2 619 PJ 3P: 3 919 PJ
P C
S
E I
C
T A
O
R L
V
O S
E
L U CONTINGENT CONTINGENT CONTINGENT
R
E B RESOURCES RESOURCES RESOURCES
E
U - 1C: 527 PJ 2C: 4 128 PJ 3C: 3 757 PJ
D
M C
O
P
I M
I
N M
I
I E
P
T R UNRECOVERABLE
I C
A I
L A
L L
Y
PROSPECTIVE
- PROSPECTIVE PROSPECTIVE
RESOURCES
I UNDISC RESOURCES RESOURCES
Best Estimate: 14 401
N OVERED Low Estimate High Estimate
PJ
- PIIP
P
UNRECOVERABLE
L
A
C
E
(
P
I
I
P
)
Source: NSW Department of Resources and Energy, July 2014 (CSG in the Sydney,
Gunnedah, and Clarence-Moreton Basins); APPEA 2013 production statistics
Table 3.2: New South Wales unconventional resources
Production/Forecasts:
Currently low.
Commentary:
References:
Victoria
Reserves/Resources:
T D C PRODUCTION
O O
T M
A M
L E
RESERVES RESERVES RESERVES
R
I 1P 2P 3P
P C
S
E I
C
T A
O
R L
V
O S
E
L U CONTINGENT CONTINGENT CONTINGENT
R
E B RESOURCES RESOURCES RESOURCES
E
U - 1C: 403 PJ 2C: 755 PJ 3C: 1 212 PJ
D
M C
O
P
I M
I
N M
I
I E
P
T R UNRECOVERABLE
I C
A I
L A
L L
Y
PROSPECTIVE
- PROSPECTIVE PROSPECTIVE
RESOURCES
I RESOURCES RESOURCES
Best Estimate: 452
N Low Estimate High Estimate
PJ*
-
P
L
A UNDISC
C OVERED
E PIIP
UNRECOVERABLE
(
P
I
I
P
)
Source: Lakes Oil, includes Wombat, Trifon, Gangell and North Seaspray tight gas
except for *Wombat only
Table 4.2: Victorian unconventional resources
Production/Forecasts:
None.
nil.
Commentary:
References:
Tasmania
Reserves/Resources:
None.
Production/Forecasts:
None.
None.
Commentary:
South Australia
Reserves/Resources:
T C PRODUCTION
O O
T M
A M
L E
D RESERVES RESERVES RESERVES
R
I 1P 2P 3P
P C
S
E I
C
T A
O
R L
V
O S
E
L U CONTINGENT CONTINGENT CONTINGENT
R
E B RESOURCES RESOURCES RESOURCES
E
U - 1C: 1 725 PJ* 2C: 5 395 PJ** 3C: 6 807 PJ*
D
M C
O
P
I M
I
N M
I
I E
P
T R UNRECOVERABLE
I C
A I
L A
L L
Y
PROSPECTIVE PROSPECTIVE PROSPECTIVE
-
RESOURCES RESOURCES RESOURCES
I
Low Estimate: 45 000 Best Estimate: 118 High Estimate: 268
N
PJ*** 000 PJ* 000 PJ***
-
P UNDISC
L OVERED
A PIIP
C
UNRECOVERABLE
E
(
P
I
I
P
)
Source: *Roadmap for Unconventional Gas Projects, pages 91-2, Santos Cooper Basin
Unconventional Gas Opportunities and Commercialisation, page 6, includes
PGA Prospective Resource Best Estimate,
** As for * plus Beach Energy,
*** As for * plus Roadmap for Unconventional Gas Projects, page 108
Table 6.2: South Australian unconventional resources
Production/Forecasts:
Beach Energy, Drillsearch and Senex are also actively exploring the
REM and Patchawarra resource while Beach Energy and Strike Energy
are assessing coal seam gas potential in the southern Cooper Basin.
Beach booked 2P+2C unconventional resources of 362 mmbbloe in the
Cooper Basin, equivalent to 2.168 Tcf of gas. For PRLs 33 to 48 and ATP
855 along, net 1.6 Tcf 2C resources was booked for Beach Energy (see
the link below). Contingent unconventional gas resources totalling
more than 5 Tcf have been identified in the South Australian Cooper
Basin by the Cooper Basin Joint Venture (operated by Santos), Beach
Energy and Senex Energy, approaching the total sales gas production
from the Basin to date. Cooper Energy is investigating the shale gas
potential of the Otway Basin. There is no production forecast
associated with this activity.
Moderate.
Commentary:
The potential from these reservoirs is very large. Morton (1998) has
estimated that the Cooper Basin source rocks have the potential to
have generated between 4 027 and 8 055 Tcf of gas although only a
small portion of that could reasonably be regarded as a resource.
References:
Reserves/Resources:
T D C PRODUCTION
O I O
T S M
A C M
L O E
V R RESERVES RESERVES RESERVES
P E C 1P 2P 3P
E R I
T E A
R D L
O S
L P U CONTINGENT CONTINGENT CONTINGENT
E I B RESOURCES RESOURCES RESOURCES
U I - 1C: 3 275 PJ* 2C: 4 599 PJ* 3C: 5 898 PJ*
M P C
O UNRECOVERABLE
I M
N M
I E
T R
I C
A I
L A
L L
Y
PROSPECTIVE
- PROSPECTIVE PROSPECTIVE
RESOURCES
I RESOURCES RESOURCES
Best Estimate: 427
N Low Estimate High Estimate
000 PJ**
-
P
L
A UNDISC
C OVERED
E PIIP
UNRECOVERABLE
(
P
I
I
P
)
Source:* Norwest Energy, Transerv,,AWE ** Norwest Energy, EIA/ARI World Shale Gas
and Shale Oil Resource Assessment, AWT data in ACOLA Report 6 Securing
Australias Future Engineering energy
Table 7.2: Western Australian unconventional resources
Production/Forecasts:
None
Moderate.
Since 2005 towards end 2013, 15 exploration wells have been drilled
to search for shale and tight gas resources in Western Australia. Seven
of these involved hydraulic fracturing to test the capacity of the
reservoir to generate commercial gas flows.
Commentary:
References:
Arrowsmith
http://www.norwestenergy.com.au/assets/files/ASX
%20Announcements/2013/2013%2008%2002%20EP413%20DM
%20Contingent%20Resource%20Estimate.pdf
AWE 2014FY Results
http://www.awexplore.com/IRM/Company/ShowPage.aspx/PDFs/3270
DMP, 2014 Natural Gas from Shale and Tight Rocks
http://www.dmp.wa.gov.au/documents/Natural_Gas_from_Shale_and_Tight_Roc
ks_-_An_overview_of_Western_Australia_regulatory_framework.pdf
EIA/ARI World Shale Gas and Shale Oil Resource Assessment
http://www.eia.gov/analysis/studies/worldshalegas/
Warro
http://www.transerv.com.au/images/stories/2012-11-
05_Warro_Final_Commitment.pdf
Western Australian Atlas of Petroleum Fields, Vol. 1, Onshore Perth
Basin, Owad-Jones, D. and
Ellis, G., 2000
Western Australia Atlas of Petroleum Fields, Volume 2, Part 1, Onshore
Canning Basin,
Jonasson, K.E., 2001
Western Australia Atlas of Petroleum Fields, Volume 2, Part 2, Onshore
Carnarvon Basin, Ellis,
G.K. and Jonasson, K.E., 2001
Whicher Range Development Concept
http://www.whicherenergy.com/index.php?option=com_content HYPERLINK
"http://www.whicherenergy.com/index.php?
option=com_content&view=article&id=60:development-
concept&catid=37:ep408&Itemid=69"& HYPERLINK
"http://www.whicherenergy.com/index.php?
option=com_content&view=article&id=60:development-
concept&catid=37:ep408&Itemid=69"view=article HYPERLINK
"http://www.whicherenergy.com/index.php?
option=com_content&view=article&id=60:development-
concept&catid=37:ep408&Itemid=69"& HYPERLINK
"http://www.whicherenergy.com/index.php?
option=com_content&view=article&id=60:development-
concept&catid=37:ep408&Itemid=69"id=60:development-concept HYPERLINK
"http://www.whicherenergy.com/index.php?
option=com_content&view=article&id=60:development-
concept&catid=37:ep408&Itemid=69"& HYPERLINK
"http://www.whicherenergy.com/index.php?
option=com_content&view=article&id=60:development-
concept&catid=37:ep408&Itemid=69"catid=37:ep408 HYPERLINK
"http://www.whicherenergy.com/index.php?
option=com_content&view=article&id=60:development-
concept&catid=37:ep408&Itemid=69"& HYPERLINK
"http://www.whicherenergy.com/index.php?
option=com_content&view=article&id=60:development-
concept&catid=37:ep408&Itemid=69"Itemid=69
Northern Territory
Reserves/Resources:
T D C PRODUCTION
O I O
T S M
A C M
L O E
V R RESERVES RESERVES RESERVES
P E C 1P 2P 3P
E R I
T E A
R D L
O S
L P U CONTINGENT CONTINGENT CONTINGENT
E I B RESOURCES RESOURCES RESOURCES
U I - 1C: 3.2 PJ 2C: 19.6 PJ 3C: 61.1 PJ
M P C
O UNRECOVERABLE
I M
N M
I E
T R
I C
A I
L A
L L
Y PROSPECTIVE
- PROSPECTIVE PROSPECTIVE
RESOURCES
I RESOURCES RESOURCES
Best Estimate: 257
N Low Estimate High Estimate
276 PJ
-
P
L
A UNDISC
C OVERED
E PIIP
UNRECOVERABLE
(
P
I
I
P
)
Source: Munson (2014)
Table 8.2: Northern Territory unconventional resources
Production/Forecasts:
None
Commentary:
References:
Armour Energy
http://www.armourenergy.com.au/investors/investment-research
7-August-2013
Energy NT 2013
http://www.nt.gov.au/d/core/Content/File/commodities/2013_EnergyNT.pdf
Independent Experts Report for Armour Energy Limited
http://www.empireenergy.com/pdf/McArthur%20Basin%20Armour
%20Co%20Ltd%20Ind.%20Geo's%20Report.pdf
Magellan signs long-term gas supply deal for Dingo field
http://www.ogj.com/articles/2013/09/magellan-signs-long-term-
gas-supply-deal-for-dingo-field.html
Munson TJ, 2014. Petroleum geology and potential of the onshore
Northern Territory,
2014. Northern Territory Geological Survey, Report 22.
Offshore areas
Unconventional resource potential:
None
Reserves/Resources:
None
Production/Forecasts:
None
None
Commentary: