[kildred590]

Beetaloo Basin is going ahead already. I have a friend working there. So far they are running a team of 30/ 40 at the exploration stage. The N.T. Government is trying to fast track a new LNG plant at Darwin to expedite exports.

Even the company admits that the shale oil is only "potential" and is unconventional.

The exploration is for gas, but where will they sell it to ? No one lives there and building a pipleine to the coast would be too expensive.

The LNG plant in Darwin is for conventional NG from the north-west, and the company has already stated it will build an offshore plant and bypass Darwin entirely.

[copious.abundance]

Here ya go kildred, from the Falcon Oil and Gas presentation on the Beelalo Basin.
http://www.falconoilandgas.com/pdf/Beet ... -Final.pdf

From page 11 - these are some damn good rocks.


Then on the next page it describes some associated sandstones, most of which already have already had oil and/or gas shows. More good rocks.

[copious.abundance]

Oooo, here's a real goodie I missed before!

According to an assessment by Ryder Scott, the amount of oil-in-place in Falcon's Beetaloo Basin holdings is . . .

. . . 263.97 to 572.45 billion barrels!!!

Abundance - what a concept!

[peripato]

Beetaloo Basin is going ahead already. I have a friend working there. So far they are running a team of 30/ 40 at the exploration stage. The N.T. Government is trying to fast track a new LNG plant at Darwin to expedite exports.

Even the company admits that the shale oil is only "potential" and is unconventional.

The exploration is for gas, but where will they sell it to ? No one lives there and building a pipleine to the coast would be too expensive.

The LNG plant in Darwin is for conventional NG from the north-west, and the company has already stated it will build an offshore plant and bypass Darwin entirely.

Of course Oily never says how the hydrocarbons will be produced (extracted) or at what cost, because it's somewhere to the right of our technical capabilities and somewhat to the left of ruinous.

[copious.abundance]

Of course Oily never says how the hydrocarbons will be produced (extracted) or at what cost, because it's somewhere to the right of our technical capabilities and somewhat to the left of ruinous.

OK, if you insist.

Here's how it's going to be produced: With oil wells. Just like this one, from the Falcon Oil and Gas PDF linked above.



As for the cost, according to the PDF, Falcon says it has 7 million acres leased in the Beetaloo Basin. Let's say only half of those get developed - maybe the other half are geologically bad spots, environmentally off-limits, or other reasons. So we've got 3.5 million acres to deal with.

Spacing for wells like this are usually 1 per square mile (640 acres) or sometimes 2 or 4 per square mile, depending on how good the rock it's tapping into is at that location. Uniform 1 square mile spacing would get you 5,468 wells. Let's say they develop some of it in 2 or 4 per sq mi spacing, so let's round that up to 6,000 wells.

Wells drilling into this thing are going to be similar to Bakken wells, which typically run around $5 million each (USD). Assuming costs in this part of Australia would be reasonably similar (who knows?), 6,000 wells would cost a total of $30 billion. Of course that would be stretched out over 20 years or thereabouts. Add in another, say, $5 or $10 billion for various kinds of infrastructure (pipelines, etc) and you're at $35-$40 billion. There are also costs for leases (probably just a handful of owners in this case), royalties and a few other things. So let's just round it all up to an even $50 billion.

The PDF outlines many similarities of this shale to the Bakken. Wells in the Bakken these days have EUR's of around 500K-700K barrels. Let's use an average of 600K.

600K barrels/well x 6,000 wells = 3.6 billion barrels produced. Notice this is a conservative number, as the link I posted above states a mean recoverable value of 17.5 billion barrels.

Assume an average price per barrel of this particular grade of oil at $75/barrel. Multiply that by 3.6 billion barrels. You then get an income of $270 billion from selling the oil. Compare that to the total costs I calculated above of $50 billion. You then can see why plays like this are so lucrative.

[peripato]

Of course Oily never says how the hydrocarbons will be produced (extracted) or at what cost, because it's somewhere to the right of our technical capabilities and somewhat to the left of ruinous.

OK, if you insist.

Here's how it's going to be produced: With oil wells. Just like this one, from the Falcon Oil and Gas PDF linked above.



As for the cost, according to the PDF, Falcon says it has 7 million acres leased in the Beetaloo Basin. Let's say only half of those get developed - maybe the other half are geologically bad spots, environmentally off-limits, or other reasons. So we've got 3.5 million acres to deal with.

Spacing for wells like this are usually 1 per square mile (640 acres) or sometimes 2 or 4 per square mile, depending on how good the rock it's tapping into is at that location. Uniform 1 square mile spacing would get you 5,468 wells. Let's say they develop some of it in 2 or 4 per sq mi spacing, so let's round that up to 6,000 wells.

Wells drilling into this thing are going to be similar to Bakken wells, which typically run around $5 million each (USD). Assuming costs in this part of Australia would be reasonably similar (who knows?), 6,000 wells would cost a total of $30 billion. Of course that would be stretched out over 20 years or thereabouts. Add in another, say, $5 or $10 billion for various kinds of infrastructure (pipelines, etc) and you're at $35-$40 billion. There are also costs for leases (probably just a handful of owners in this case), royalties and a few other things. So let's just round it all up to an even $50 billion.

The PDF outlines many similarities of this shale to the Bakken. Wells in the Bakken these days have EUR's of around 500K-700K barrels. Let's use an average of 600K.

600K barrels/well x 6,000 wells = 3.6 billion barrels produced. Notice this is a conservative number, as the link I posted above states a mean recoverable value of 17.5 billion barrels.

Assume an average price per barrel of this particular grade of oil at $75/barrel. Multiply that by 3.6 billion barrels. You then get an income of $270 billion from selling the oil. Compare that to the total costs I calculated above of $50 billion. You then can see why plays like this are so lucrative.

I don't know where you're coming from mate. It's obvious that the company in question has no idea how its going to extract this stuff (if it can be found in any quantity at all), reliably and at a profit. Perhaps they should hire your sublime services? From the same report;

There is no certainty that any portion of the undiscovered resources will be discovered and that, if discovered, it may not be economically viable or technically feasible to produce any of the resources.

[copious.abundance]

Geeze, some people will do anything to convince themselves something they don't like won't happen.

I don't know where you're coming from mate. It's obvious that the company in question has no idea how its going to extract this stuff

Huh? Look at the photo above. That is a well being drilled into the formation under discussion.

I repeat: This company has already drilled one or more wells into this formation. Since they've already drilled at least one well into this formation, it's clear to all but the blind that they know how they're going to extract this stuff: With oil wells! Gee, what a concept! Extracting oil with oil wells!

(if it can be found in any quantity at all)

Falcon Oil and Gas sez . . .

Table 3: Total Undiscovered and Prospective (Recoverable) Oil Resources in the Beetaloo Basin, Australia
Unrisked Prospective (Recoverable) Oil Resources (Billion stb):
Low: 10.26
Best: 17.54
High: 28.45

Those are billions of barrels. Yes, there are large quantities of oil in these rocks. Sorry to ruin your day.

reliably and at a profit.

See analysis above. If you don't like the numbers and the analysis, please provide your own.

From the same report;

There is no certainty that any portion of the undiscovered resources will be discovered and that, if discovered, it may not be economically viable or technically feasible to produce any of the resources.

Ah, another denialist taking refuge in the legalese. That's like the dimwits who look at the SEC-required "Forward Looking Statement" disclaimer and use that as an excuse to pretend the entire thing is a piece of garbage.

[sparky]

.
The geology of Australia is really really old
not only does it has the oldest rocks on Earth , the first trace of life but also ,
still living ,the oldest of oxygen life organism ,the stromatolites
the hills North of Adelaide gave their name to the Eudiacara fauna
There is even a theory linking a near by massive meteorite crater with the Cambrian explosion
from a bloke from S.A.Uni

This stuff is just in the middle , the paleobiologists are going to go apesh.t

[peripato]

Geeze, some people will do anything to convince themselves something they don't like won't happen.

I don't know where you're coming from mate. It's obvious that the company in question has no idea how its going to extract this stuff

Huh? Look at the photo above. That is a well being drilled into the formation under discussion.

I repeat: This company has already drilled one or more wells into this formation. Since they've already drilled at least one well into this formation, it's clear to all but the blind that they know how they're going to extract this stuff: With oil wells! Gee, what a concept! Extracting oil with oil wells!

(if it can be found in any quantity at all)

Falcon Oil and Gas sez . . .

Table 3: Total Undiscovered and Prospective (Recoverable) Oil Resources in the Beetaloo Basin, Australia
Unrisked Prospective (Recoverable) Oil Resources (Billion stb):
Low: 10.26
Best: 17.54
High: 28.45

Those are billions of barrels. Yes, there are large quantities of oil in these rocks. Sorry to ruin your day.

reliably and at a profit.

See analysis above. If you don't like the numbers and the analysis, please provide your own.

From the same report;

There is no certainty that any portion of the undiscovered resources will be discovered and that, if discovered, it may not be economically viable or technically feasible to produce any of the resources.

Ah, another denialist taking refuge in the legalese. That's like the dimwits who look at the SEC-required "Forward Looking Statement" disclaimer and use that as an excuse to pretend the entire thing is a piece of garbage.

Stop trying to blow smoke up people's arses. This is a two bit operation that when floated in 2006 was a 6 dollar stock. Today it trades for just a few cents. Wow, that's a ringing endorsement of a company and its prospects if ever there was one. Give me a break.

[copious.abundance]

I'll be sure to keep you updated.

[peripato]

I'll be sure to keep you updated.

Let's check back in four years time, ok? I'm sure they will have drilled a few more test wells by then.

[copious.abundance]

Stop trying to blow smoke up people's arses. This is a two bit operation that when floated in 2006 was a 6 dollar stock. Today it trades for just a few cents. Wow, that's a ringing endorsement of a company and its prospects if ever there was one. Give me a break.

How's this for a ringing endorsement?



LINK

Falcon Oil & Gas Ltd. Announces Participation Agreement with Hess Australia for Beetaloo Basin Project

DENVER, May 2, 2011 /CNW/ -- Falcon Oil & Gas Ltd. ( "Falcon"), an international oil and gas exploration and production company, announced today that Falcon Oil & Gas Australia Ltd ("Falcon Australia"), Falcon's 73 percent owned subsidiary, has signed a Participation Agreement with Hess Australia (Beetaloo) Pty Ltd ("Hess"), an affiliate of Hess Corporation, for the acquisition of an interest in onshore Exploration Permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia (the "Agreement Area").

The terms of the agreement remain as outlined in the Letter of Intent between the two companies announced on February 22, 2011. In brief, and subject to certain regulatory approvals and standard conditions, Hess will earn a 62.5 percent working interest in approximately 25,200 square kilometers (6,227,500 acres) by making a payment to Falcon Australia, acquiring warrants in Falcon Oil & Gas Ltd., conducting an extensive seismic programme, and drilling five wells to explore and appraise the Agreement Area. Hess has the right to withdraw from the project following the seismic evaluation and again following the drilling phase, in which event the entire interest would transfer back to Falcon Australia. In addition to its 37.5 percent working interest in the joint acreage, Falcon Australia will retain 100 percent ownership in the entirety of EP99 and 405 square kilometers (100,000 acres) in EP98.

The seismic survey is anticipated to commence once necessary government and land users' approvals are obtained. Falcon Australia will also carry out its work planned for the Shenandoah-1 well, commencing with re-opening and casing the existing wellbore planned for the third quarter 2011, followed by a comprehensive testing program.

[peripato]

Stop trying to blow smoke up people's arses. This is a two bit operation that when floated in 2006 was a 6 dollar stock. Today it trades for just a few cents. Wow, that's a ringing endorsement of a company and its prospects if ever there was one. Give me a break.

How's this for a ringing endorsement?

-- Falcon Oil & Gas Ltd. ( "Falcon")

Yet the stock is still just 16¢... Time to pony up, Oily! Surely you've heard of value investing? Well, with the stock nearly worthless what better value can a company be, right? Ground floor opportunity!

May 4 2011 snapshit;

52 Week Low - 11¢
52 Week High - 23¢

Day Open - 16¢
Day High - 16¢
Day Low - 16¢
Day Close - 16¢
Previous Close - 16¢

Avg 10 day Volume - 518k

My 666th post, ooh scary...

[copious.abundance]

You conveniently forgot that the company which now has a 62% working interest has a stock price of $78 and change as I write this.

[peripato]

You conveniently forgot that the company which now has a 62% working interest has a stock price of $78 and change as I write this.

Really Oily. You don't know shit about the way the stock market works. If that shitpile company - Falcon, had any value what-so-ever it would have rallied either on the news (ooh, what a surprise!), or in anticipation of the announcement (insider leaks).