The US oil giant has signed a non-binding deal with New Standard Energy, looking to spend up to $A103 million in Western Australia. The aim is to finalise the agreement by September 2011, and begin the Goldwyer project by 2012.

The Goldwyer project runs along the northern edge of Great Sandy Desert and stretches across 45,000 sq km of the onshore Canning Basin.

This follows the uncovering of South Australia’s shale gas potential by Adelaide-based Beach Energy. Although just beginning to gain momentum in Australia, the shale gas industry already accounts for 23 per cent of US gas production.