South Australia 'sitting on oil worth $20 trillion'

[Jake Milne]

Now I'm not usually one for speculation but if this is true, feasible to extract and actually goes to development Adelaide is looking very attractive.

http://au.finance.yahoo.com/news/south-
australia--sitting-on-oil-worth--20-trillion--221758928.html

 

[mattnz]

Thanks Jake, interesting to see what happens over time.

 

[Ausprop]

that should pay for some decent infrastruture in sydney

 

[jim1964]

Adelaide is looking very attractive.[/QUOTE

Heard about this today,at last some good news.Peter Bond is a pretty smart operator,see where he takes it.]

 

[strongy1986]

Now I'm not usually one for speculation but if this is true, feasible to extract and actually goes to development Adelaide is looking very attractive.

http://au.finance.yahoo.com/news/south-
australia--sitting-on-oil-worth--20-trillion--221758928.html

Shale is in early stages of development in Australia.
Santos and Beach Energy have both fracced vertical wells and achieved what look to be uneconomic flow rates. However with the price of gas set to take off and considering they are yet to drill a horizontal well ( can target whole sections instead of just a fraction ) a betting man would say its the next big thing. Just look at the US.

Jake, are you feeling alright? Very uncharacteristic of you.

I suggest if anyone is interested in this next boom then make sure you understand the industries. This is what I was alluding to in the chinchilla towoomba thread.

 

[JT7]

Very interesting indeed......

I know some have been talking about the opening up of the Woomera Prohibited Area for some time now but this really takes it to another level.....

I'd really like to see some real evidence of action on this though...the disappointment surrounding the shelving of the Olympic Dam was difficult to digest. However, if they were serious on developing this resource South Australia could be in a similar position as Western Australia at the beginning of the last decade.

Jack

 

[Jake Milne]

I suggest if anyone is interested in this next boom then make sure you understand the industries. This is what I was alluding to in the chinchilla towoomba thread.

Couldn't agree more Strongy; you seem to know a bit, is this up your alley?

Jake, are you feeling alright? Very uncharacteristic of you.

Haha I'm good thank you, just keeping an eye on things for those Somersoftians who have an appetite for risk, no, I mean adventure.

 

[JT7]

http://www.mining.com/australia-could-see-shale-oil-boom-following-20-trillion-discovery-44833/

 

[Dazz]

Nothing like Directors of exploration companies and completely wet behind the ears journalists to contribute to a headline like that.

$ 20 Trillion my left foot.

The range quote was from 3.5 Billion bbls thru to 233 Billion bbls.

Within two seconds they've instantly grabbed the very top of the range then mulitplied it by ~ $ 100 USD / bbl. This price for oil is historically not the norm, not to mention the volumes.

Back to reality, chop the lowest figure in half, then multiple by ~ 60 USD / bbl.

Chop off taxes and costs to discover, develop and extract....and whoever is foolish enough to 'give it a whirl' deserves any profit thereafter remaining.

Don't forget the troika of Govt { red / green / black } tape to untangle.

 

[charttv]

Nothing like Directors of exploration companies and completely wet behind the ears journalists to contribute to a headline like that.

The speccy end of the stockmarket would be nothing without it

Sensational headlines = higher ratings/readers/viewers = burn through advertiser dollars faster and bumped up rates.

 

[Jake D]

Nothing like Directors of exploration companies and completely wet behind the ears journalists to contribute to a headline like that.

$ 20 Trillion my left foot.

The range quote was from 3.5 Billion bbls thru to 233 Billion bbls.

Within two seconds they've instantly grabbed the very top of the range then mulitplied it by ~ $ 100 USD / bbl. This price for oil is historically not the norm, not to mention the volumes.

Back to reality, chop the lowest figure in half, then multiple by ~ 60 USD / bbl.

Chop off taxes and costs to discover, develop and extract....and whoever is foolish enough to 'give it a whirl' deserves any profit thereafter remaining.

Don't forget the troika of Govt { red / green / black } tape to untangle.

http://www.theage.com.au/business/m...optimism-gains-ascendancy-20130124-2d899.html

read from "2:26pm..."

 

[JT7]

Lol well....that was short lived exuberance

 

[Erica]

fingers crossed they start drilling soon!!!!

With Olympic Dam expansion on hold I'm guessing BIS Shrapnel's 2012 forcast is wrong, and probabally a worse outlook than quoted earlier in the year:

"Adelaide

Adelaide’s estimated median house price of $390,000 at June 2012 represents a four per cent decline for the year after a one per cent decline in 2010/11.

“Construction in South Australia has been exceeding underlying demand,” says Zigomanis. “With state economic conditions also underperforming compared to national growth, the result has been downward pressure on prices.

“Nevertheless, with Adelaide being the most affordable of the mainland state capitals, the reductions in interest rates should also assist affordability and stabilise the price falls. While expanding mining projects such as Olympic Dam will have a positive impact on the state economy, they will take some time to ramp up and ultimately be reflected in the residential market, particularly until the excess dwelling supply is absorbed and a deficiency re-emerges.”

As a result, the residential market in Adelaide should remain challenging, with the median house price forecast to show only limited growth totalling nine per cent over the three years to 2015, which is actually equivalent to a one per cent decline in real terms.


source: http://www.architectureanddesign.co...ential-recovery-forecast-for-australian-prope

 

[gooram]

With Olympic Dam expansion on hold I'm guessing BIS Shrapnel's 2012 forcast is wrong, and probabally a worse outlook than quoted earlier in the year:

"Adelaide

Adelaide’s estimated median house price of $390,000 at June 2012 represents a four per cent decline for the year after a one per cent decline in 2010/11.

“Construction in South Australia has been exceeding underlying demand,” says Zigomanis. “With state economic conditions also underperforming compared to national growth, the result has been downward pressure on prices.

“Nevertheless, with Adelaide being the most affordable of the mainland state capitals, the reductions in interest rates should also assist affordability and stabilise the price falls. While expanding mining projects such as Olympic Dam will have a positive impact on the state economy, they will take some time to ramp up and ultimately be reflected in the residential market, particularly until the excess dwelling supply is absorbed and a deficiency re-emerges.”

As a result, the residential market in Adelaide should remain challenging, with the median house price forecast to show only limited growth totalling nine per cent over the three years to 2015, which is actually equivalent to a one per cent decline in real terms.


source: http://www.architectureanddesign.co...ential-recovery-forecast-for-australian-prope

never mind the environmental disaster that is CSG extraction, at least you'll have a few extra dollars in your pocket

 

[Jenko]

Couldn't agree more Strongy; you seem to know a bit, is this up your alley?

Yeah do tell, I'm keen to know too!

 

[strongy1986]

Not much to tell really. No inside information!

However I have been invested (shares) in this field
for over a year now and have been watching closely for a long time.

Just look how shale gas transformed the US, they are set to be the worlds largest exporter by the end of the year as they have used technology to extract oil and gas from rock that was previously declared 'too tight' to extract from.
It has also meant they are moving away from coal as a power generation source and most of what they dig up is now exported.

Back to south aus, I think if the gov can push through the deep water port development at port bonython (whyalla) then it will be the green light for the south aus mining industry as many of there deposits will now become economic to dig up.

 

[Logica]

Lol well....that was short lived exuberance

Would still be a good news for the State even if there were "only" 50 Billion bbls there... some may see it that way and "Linc shares are up 27.8 per cent to $2.76."

I guess with more future activity around Woomera, Coober P etc the miners are bound to find a large pool of resources and (hopefully) significantly improve the future outlook for the State. Fingers crossed...

 

[grantwhit]

so will fuel prices go down if we have our own oil?

 

[Burnar]

Nope, they'll sell the raw product over seas and we'll still be importing refined stuff at a huge mark-up. (Just like everything else we pull out of the ground here)

 

[Jake Milne]

Nope, they'll sell the raw product over seas and we'll still be importing refined stuff at a huge mark-up. (Just like everything else we pull out of the ground here)

Haha so sad, but so true.