Empire Energy (ASX: EEG) is aiming to develop a method for predicting shale oil and gas potential in the McArthur Basin through a relationship with the University of Adelaide's Kennedy Research Group (NYSE:KRG).
An agreement between KRG and Empire's 100%-owned subsidiary Imperial Oil & Gas allows for KRG to conduct geological studies on Imperial's McArthur Basin exploration licence applications in the Northern Territory.
Over the next 12 months, KRG and Imperial will work to develop a hydrocarbon system model that is capable of extending predictions of source rock and shale oil and gas potential in the McArthur Basin.
These studies will focus on identifying the most prospective areas for shale oil and gas drilling, through available data and the generation of critical information.
Prospectivity maps produced from the studies will be used to guide site location for the initial exploration wells, which are expected during 2012.
Imperial is targeting unconventional gas and oil in thick carbonaceous shales, predominantly in the central trough of the McArthur Basin.
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