Mitsubishi Acquires Unconventional Natural Gas and Crude Oil Interests in the Onshore Kimberley Region of Western Australia.
In June 2010, MC acquired a 50% interest in 13 conventional oil and gas exploration permits owned by Buru in the Canning Superbasin located in the Kimberley region, including the discovered gas accumulation at Yulleroo. Since acquiring this interest MC and Buru have undertaken an exploration program. In 2011 the Joint Venture made a new oil discovery (Ungani) as well as a further gas discovery (Valhalla).
Further to these conventional resource rights, MC has also acquired a 50% interest in the rights to all unconventional resources (shale gas, tight gas and shale oil, etc.) from Buru in these exploration permits by committing to fund 80% (A$40 million) of the cost of the exploration and appraisal program (up to A$50 million), for unconventional resources which will be implemented in 2012 onward.
The development of unconventional oil and gas resources in Australia is at an early phase compared with North America and other regions. However, in recent years, several major energy agencies and leading energy consultants have advised that the Canning Superbasin is one of the world's most prospective basins for unconventional resources and is considered to contain the largest unconventional resources of all of Australia's prospective basins. This year has seen the entry of major E&P companies into the region focusing on these unconventional resources.
The Joint Venture will consider development options for any significant gas reserves identified including the supply of gas to the domestic gas market in Western Australia and supplying feed gas to existing or new LNG projects.
MC plans to invest a total of more than A$100 million (portion borne by MC) in this endeavour, including current activities and those planned for the future. In the near term, MC aims to progress appraisal and commercialization of the gas and oil accumulations already discovered. In parallel, MC will continue with its long-term exploration and appraisal program for unconventional resources in the basin, with the objective of maximizing value through the development region's energy resources.
About Mitsubishi Corporation
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. With over 200 bases of operations in approximately 80 countries worldwide and a network of over 500 group companies, MC employs a multinational workforce of nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.
Source: Mitsubishi Corporation
Mitsubishi Corporation Telephone: +81-3-3210-2171 Facsimile: +81-3-5252-7705
Copyright 2011 JCN Newswire. All rights reserved. www.japancorp.net
|Printer friendly Cite/link Email Feedback|
|Date:||Dec 1, 2011|
|Previous Article:||Eisai's Canadian Sales Subsidiary Celebrates Official Introduction to Canada.|
|Next Article:||Mazda Demio 13-SKYACTIV Named 2011-2012 Car Technology of the Year by the Japan Automotive Hall of Fame.|