Oz to Fund Exploration in Beetaloo Basin

The Australian government plans to provide A$50mn to boost exploration in Northern Territory’s Beetaloo basin “to create thousands of jobs, provide significant economic benefits to the region and ensure Australia remains a world leader in the production of natural gas”, it said on December 17.

“The government will provide up to A$50mn (US$38mn) for exploration that occurs before 30 June 2022, allowing the benefits of this important asset to be realised sooner,” minister for resources, water and Northern Australia Keith Pitt said, adding the government’s funding would speed up exploration and production in the Beetaloo by around two years.

The funding will be used for grants covering 25% of eligible exploration costs, capped at A$7.5mn/well and three wells per exploration venture.

“The Northern Territory’s geological survey estimates the sub-basin could hold more than 200,000 petajoules of gas. Even if only a very conservative 10% of that gas was recovered, it could still supply Australia’s domestic gas demand for more than 10 years,” the minister said. “Industry analysis estimates the development of the sub-basin could increase economic activity by between A$18bn and A$36.8bn over the next 20 years."

Canada’s Falcon Oil & Gas, which holds significant acreages in the Beetaloo basin, welcomed the decision and said Beetaloo's development had the potential to transform the Northern Territory's economy. 

“The announcement by the Australian government highlights the strategic and economic importance of the Beetaloo sub-basin which it believes has the potential to be a world-class gas resource, transform the Northern Territory economy and generate 6,000 jobs by 2040,” Falcon CEO Philip O’Quigley said. “We look forward to continuing working with our partners, Origin, and the state and federal governments and other stakeholders towards the successful development of the sub-basin.”