Baraka Energy and Resources' McIntyre 2 well first real test of North American shale oil fracturing

Baraka Energy and Resources' (ASX:BKP) McIntyre 2 well to be drilled on EP127 in the Georgina Basin in the Northern Territory will be the first well to be multi-staged frac’d and completed.

What does this mean? It means multi-stage fracturing of rocks (frac’ing technology introduced in North America) can significantly improve the probability of success of oil and/or gas flow from the coming drill program as proven in the Bakken Oil Shale play in Canada and USA.

Baraka’s McIntyre 2 well, with PetroFrontier Corp(TSX-V: PFC), will use fracing technology and is likely to be the most important well drilled in the initial program within the Georgina Basin and Northern Territory, using this technology relative to oil shale.

The McIntyre 2 well will be drilled by Canada listed PetroFrontier Corp after a well on the adjoining Baldwin well (adjoining permit EP103) in the Georgina Basin. That rig is currently being mobilised to the well.

Adding further upside potential for Baraka's McIntyre 2 well with PetroFrontier is that it is prospective for "conventional targets" above the Basel Oil Shale in the well.  This would be seen prior to entering the shale and continuing the horizontal well into the shale in the McIntyre 2.

Upping the stakes is the interest and significant investment by North American companies in exploring oil shale in the Northern Territory such as Hess Corporation (NYSE:HES) to the north of the Georgina Basin and Central Petroleum’s (ASX:CTP) announced and indicated large expenditures into oil, coal and gas to the south of the Baraka permits.

Adding further spice to the space, there are other unlisted explorers also announcing exploration programs on the fringes of the Georgina Basin. 

Comment

Baraka offers investors a large unconventional oil and gas exploration play in the Georgina Basin.  Investors in Baraka are the beneficiaries of the Canadian rush to drill the Southern Georgina Basin.

Baraka represents the earliest way investors can “play” an ASX-listed stock attempting to unlock the oil and gas in the Southern Georgina Basin.

The Southern Georgina Basin in the Northern Territory represents one of the few remaining virtually unexplored onshore oil and gas basins in the world. Yet the rewards are potentially vast to the company that threads the needle in the Basin.

As the drilling date nears for JV partner PetroFrontier’s well, the Baraka share price is likely to be a beneficiary.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17723/baraka-energy-and-resources-mcintyre-2-well-first-real-test-of-north-american-shale-oil-fracturing-17723.html