Dennis Donald, managing director, will address the Unconventional Gas Forum 2012 in Barcelona, about the phenomenal global potential of unconventional gas. As Warrego prepare to close second-round funding, Mr Donald believes the interest in the sector has never been greater. Mr Donald said, "Industrialists, economists, analysts and politicians worldwide agree that with increasing energy consumption, comes the risk of a serious supply shortfall. Business models that served us well in an age of cheap and easy oil and gas, may struggle to be viable or competitive as the energy landscape rapidly changes.
"The 21st century world needs a transition fuel. In our view it is undoubtedly unconventional gas that will bridge the gap between growing energy demand and depleting conventional hydrocarbon resources. Unconventional gas should be seen as an enabler for the future renewable energy sources."
Global interest in unconventional gas has developed significantly over the last 12-18 months. In April 2011, this prediction was reinforced when the US Energy Information Administration (EIA) published an extensive report concerning the global outlook for shale gas mapping the 48 most important prospective basins in 32 countries. The Perth Basin, where Warrego’s unconventional gas block EP 469 is located, is one of four Australian basins identified by the EIA with major shale gas potential, extending to approximately 20,000 miles2.
Mr Donald continued, "The International Energy Agency has described the next 20 years as the potential 'golden age of gas', and I agree. From a standing start 30 years ago, shale gas now accounts for 34% of America's natural gas production and I believe this success can be emulated worldwide with ingenious definition technologies, rapid validation and importation of key enabling technology, all important factors in Warrego's success to-date.
"There is a clear opportunity for innovative companies to make their mark in this sector now. First-mover advantage is, in my opinion, key. We intend to import proven and successful key technologies from other oil and gas provinces and work with the best local experts and service providers to unlock the WA shale market. "We are witness to the beginnings of a new era in the global energy mix and I look forward to meeting industry peers at the Unconventional Gas Forum."