Live from NAPE 2026, Black Mountain Oil & Gas President George Witman breaks down a massive international project with billions on the line. - Monday the 4th
From Australia to Texas, this is what large-scale energy development really looks like.
Connect with George Witman https://www.linkedin.com/in/george-witman-497b98125/
Black Mountain Oil & Gas https://blackmountainoilandgas.com/
1. Valhalla Project in Australia (Primary Focus)
The centerpiece of the conversation is Black Mountain Oil and Gas's massive international project in Western Australia. Key details include:
Scale: A 1.7 million-acre position in the Canning Basin (comparable to the Permian Basin)
Resource: One of the world's largest untapped natural gas reserves with 1.8 TCF of contingent reserves and 13 TCF of possible reserves (potentially 15 TCF total)
Development: After 6 years of effort, they received EPA approval in January 2026 to proceed with hydraulic fracturing
Economics: Potential to generate billions in revenue over 20+ years, with LNG export to Asian markets (Korea, Japan) at ~$10/MCF pricing
Challenges: Regulatory approval, infrastructure development, logistics (wet season constraints), and securing international partners
2. Regulatory & Environmental Approval Process
George Whitman discusses the rigorous approval process in Australia:
5,000-6,000 pages of documentation required
Multiple regulatory bodies (EPA-equivalent, Department of Mining, state and federal levels)
Extensive environmental and safety reviews
Public comment periods addressing activist concerns
Comparison to U.S. permitting challenges (6 years in Australia vs. 1-1.5 years in New Mexico)
3. Domestic Operations in North America
Black Mountain's ongoing projects in the U.S.:
Eagle Ford Shale (Webb and Dimmitt counties, Texas): Successfully drilling Austin Chalk wells with strong recent results
Expansion strategy: Bidding on large South Texas assets in a competitive market
Pecos Country Operating: Potential partnership opportunities in shallow sand sections
4. Oil & Gas Market Conditions in 2026
Discussion of current industry dynamics:
Oil prices hovering around $67/barrel (predictions ranged from $45-$58)
Strong deal flow and M&A activity despite low price forecasts
Shift toward PDP (Producing, Developed, Producing) assets for predictable cash flow
Buyer's market for assets; strategic timing for acquisitions
Production constraints and rig count impacts on U.S. unconventional output
5. Energy Policy & Regulatory Environment
Broader context for the industry:
Current administration's focus on deregulation and removing permitting roadblocks
Comparison of permitting timelines across states (Texas vs. New Mexico)
Energy security as national security
The importance of domestic energy independence
6. Business Strategy & Capital Allocation
George's approach to growth:
Balancing exploration (undeveloped assets) with production (PDP assets)
Drilling during low-price periods and buying leases strategically
Partnering with major operators (EOG, Chevron) on horizontal wells
Seeking international partners for large-scale projects requiring billions in capital
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