From the report:
The prime recommendation of this report is that Oil Basins persist with their
objective to explore for, develop and produce hydrocarbons of a nonconventional
origin from their Canning Basin acreage. Their innovative ideas of
CSG and/or shale gas production in this basin should be pursued. Their
consideration of gas to synthetic crude oil synthesis is capable of unlocking a
potential large scale undiscovered resource in an area of energy shortage and
with proposed export facilities nearby. Third party access to facilities is
established. Liquid hydrocarbons command a premium over gas and are more
readily economically transportable and more readily saleable. Ready local and,
probably, export markets exist for liquids in this time of oil shortage and high
The major conclusions of this report are:-
Oil Basins Limited’s Canning Basin acreage is prospective for hydrocarbons,
either reservoired conventionally or non-conventionally.
The organic rich shales of the Goldwyer, Gogo, Laurel, lower Anderson
Formations and Winifred Formation of the Grant Group of the Canning Basin
sequence are established rich mature source rocks and they have sourced
several oil and a gas accumulation in within the Fitzroy Sub-basin.
The widespread sub-bituminous coal seams of the basal Lightjack Formation of
the Permian aged Liveringa Group are prospective for coal bed methane
In addition to the established conventional source intervals listed above the
organic rich Permian aged Noonkanbah Formation exhibits excellent shale gas
potential, as do the traditional source intervals. The Noonkanbah Formation
appears to be in the early mature window in The Fitzroy Trough in general and
Oil Basins’ tenements in particularly. However more analytical geochemical work
is required to establish thermal maturity of the various potential shale gas source
The Noonkanbah Formation is likely to be productive of “‘wet” or condensate rich
gas in most of the area of Oil Basins’ tenements. Some of previously mentioned
source intervals are also.
These tight carbonaceous shales are not traditional reservoir units as they lack
both porosity and permeability. However given the brittle nature of these units
and the high organic content along with adsorbed trapped gas they could be
ideal candidates for hydraulic fracture stimulation and horizontal wells to produce
a potentially large hydrocarbon accumulation.
If the Company’s exploration programs, either aimed at CSG or shale gas, are
successful the sheer size of target resource could enable the construction of a
large scale GTL plant. Recent feasibility studies, conducted for other operators,
suggest that these processes are economic at the current oil price. However the
economic viability of this process is volume dependent.
Ready markets exist for the sale of liquids and to a lesser extent gas, and other
Oil Basins have a very innovative and elegant proposal to utilize a potential but
as yet undiscovered resource of large magnitude in a remote location in an area
of insatiate energy demand.
The company has a substantial acreage position in the Fitzroy Sub-basin, the
most prospective and least remote of the Canning Basin’s sub-basins and will
have significant production from it if their exploration programs are fruitful.
The Fitzroy Sub-basin and the company’s acreage are sparsely explored and
potential exists for large discoveries of hydrocarbons either of a conventional or
The report is much too long to give justice with a few quotes from it but if any one of several sites are successful (or taken over) there looks like good leverage to me. The numbers look pretty good for a company with only $5M market cap in my opinion.
I’ve just bought a modest amount based on pure speculation. They seem to have a better chance than some.