That move would give AEP control of an area larger than the US state of Oklahoma, twice the size of the Anadarko Basin and 10 times the size of the most productive portions of the Marcellus and Utica shale plays, US media has reported.

While no one is talking, the most obvious landholding in the area are leases held by the Gina Rinehart's Jacaranda Alliance or those held by Pangaea Resources, a company McClendon was previously reported to be close to a deal with.

Pangaea and Energy & Minerals Group are working toward drilling four wells - Tarlee-1, Tarlee-2, Wyworrie-1 and Birdum Creek-1 - in EP 167 and EP 168.

EMG is a US based private equity concern led by John Raymond, who has been a backer of McClendon in the past.

Pangaea has a gross 58,000sq.km of which 18%, a net 10.440sq.km, has been taken up by EMG.

The Jacaranda Alliance, which holds EP 144, EP 153 and EP(A) 154 immediately adjacent to leases owned by Empire and Armour, is another option, however Jacaranda's permits cover just

30,000sq.km, less than the US media has reported.

The Jacaranda Alliance was established in 2007 by Hancock Prospecting with a company owned by former group executives of Rio Tinto/CRA to explore for minerals and petroleum in Australia, Papua New Guinea, New Zealand and South East Asia.

Energy News contacted the Jacaranda Alliance, but was told there was nothing to say because "nothing had happened yet".

The ongoing Origin-Sasol-Falcon Oil & Gas campaign and Santos' Tanumbirini-1 exploration well have all highlighted the potential of the area.

Santos is, of course, a third possible farm-out candidate, given its recent discussions around asset sales.

Drilled in EP 161 in mid-2014, Tanumbirini-1 was drilled to a total depth of 3945m and encountered multiple thick intervals of organic-rich rocks at the primary objective Mid-Velkerrie level, accompanied by significant mud gas shows.

Elevated gas readings were encountered over a total gross interval in excess of 500m.

Origin's recently completed Kalala S-1 well was drilled to just 2619m, confirming the Middle Velkerri in a highly prospective gas mature depth window, with 500m of shale gas shows with net pay over 150m.

Falcon said there were a number of prominent good quality sandy/silty reservoir sections measuring between 50-80m in thickness, each representing potential candidates for horizontal drilling.

In May the Frack-Free Alliance NT comments by the NT government that the first petroleum exploration licences established on Aboriginal land managed by the Northern Land Council represents a win-win for the resource industry and Indigenous community development.

"The NT government has just granted permission to frack significant parcels of Aboriginal community and prime pastoral land, including the iconic Bitter Springs region and surrounding Elsey Station, to a subsidiary of billionaire resources giant Gina Rinehart, Jacaranda Minerals," the Don't Frack Katherine community group said.

The deal followed the NT's Hawke Inquiry which found "no justification whatsoever" to delay gas extraction.

AEP has also recently moved into the Mexican shale scene with EIM Capital.