I am ready! Shale gas could be the next success-story for Australia Oil & Gas. Increasing news flow on this exciting potential means early investors could be well rewarded. The best immediate leverage for stocks under our coverage is in Beach Energy and AWE while Santos retains the greatest exposure to acreage, plus it has production infrastructure. It’s very early days in Australia... and highly speculative, but we document a rising level of activity from over 25 local and foreign operators, consider the risks involved and put forward an investment strategy. *** …following extraordinary success in the US. It took less than a decade for shale gas to completely re-shape US domestic gas industry dynamics. The search for shale gas has now gone global, including into Europe, China and Australia. Shale gas potential is enormous. In Australia, industry estimates are for as much as 400 Tcf of recoverable gas in total. The focus of the local industry over 2011 and 2012 will be to understand whether any of this gas can technically be produced. Cooper and Perth basins are best understood and there is existing production infrastructure and pipelines. Other prospective basins are the Canning, Georgina and Beetaloo, but less is known about rock quality, and production and transport infrastructure is absent. Surfing is risky. Around A$500mn in 2011 is needed and as with any exploration, there will be set-backs. The size of the prize is potentially very large, but unlocking the resource is likely to be an evolutionary process and as with any exploration there are likely to be setbacks. Collective industry results will be more important than singular outcomes at this time... http://www.barakaenergy.com.au/pdfs...ey_Oz_Energy_Shale_Gas_Research_June_2011.pdf *** But I do hope BKP gets the shale oil since I am early bird for it! And I am 100% sure if it has the shale oil, it would be a beautiful white swan from the ugly ducks. Its glossy new appearance, if could be painted by the shale oil, could shoot its price much higher than anyone's expectation! Is it gambling? It depends on how well you know its tenement, the risk, the potential reward, and your affordability and your age or your personal profile. At my average buying price I know I am a value bargainer! By the way I do feel sorry for ORO and DMN due to their unlucks in REE exploration. Some would be lucky and then do you want to buy in the ruins and wait for the lucks? I like to wait for!