The most interesting part of the operational update is this: “On-going evaluation of core and well data supports presence of world class oil source rocks in Beetaloo with TOC values in excess of 10%.”
In excess of 10%!!!. The United States Energy Information Agency uses a minimum of 2% TOC to determine if a formation is considered a prospective shale formation. The Duvernay Shale in Alberta Canada has a TOC level of 11% in some areas at a depth of 7,500 feet in the east to 16,400 in the western part of the formation. By the way, Chevron just bought another piece of the basin about a month ago, bringing their total holding in the basin to around 250,000 acres.
Obviously numerous factors determine recoverable assets, so let us hope Falcon releases the technical data for all too see. However, I am sure they will not until a deal is signed. Unless Phillip O’Quigley is a master swindler, he displays nothing but confidence if you analysis his recent strategic moves.
