Energy: Fremont’s just realised its Colorado oil hit is in the sweet spot for new shipping standards
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US-bound oil producerFremont Petroleum (ASX:FPL) has been talking about one of its wells all year — the J.W. Powell in the Coloradan ‘Niobrara’ formation.
It said in March it had found oil and gas (that was when its share price bounced), but today produced lab results that show the oil and the gas coming up from under the ground is “high quality”.
That is, the gas is high in methane and ‘light sweet crude oil’, which you may remember is the new standard as of January 1 next year for shipping.
Fremont says the results are being used in its efforts to find a buyer for the gas, a process that has, to shareholder frustration, been running since at least August last year.
In Australia, east coast gas producer Senex (ASX:SXY) is doing the final checks of its gas processing plant in Roma, Queensland before getting it running. It expects to be selling gas out of the 6 petajoules/year plant to LNG exporter GLNG by the middle of the year.
And Empire Energy’s (ASX:EEG) Australian division has submitted its revised environment management plan to the Northern Territory government to look for shale gas. The territory undid a ban on fracking for unconventional oil and gas last year, and earlier this year released the recommendations it wants companies to follow in order to move exploration= forward.
Origin Energy (ASX:ORG) and Santos (ASX:STO) have already submitted their plans for shale exploration in the Northern Territory.