Falcon Oil & Gas Ltd has annnounced that Origin Energy has begun drilling in one of Northern Territory’s key gas fields, with potential implications for the Northern Gas Pipeline and the Mount Isa economy.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Falcon and Origin are joint venture partner and operator of the Beetaloo project, 600 kilometres south of Darwin and Origin has now signed a rig contract with Ensign Australia Pty Ltd. for Rig 963 for the 2019 Stage 2 Beetaloo drilling program, with an option to extend the contract into 2020.
The JV is evaluating the potential of the liquids-rich gas fairways in what are called the Kyalla and Velkerri plays in the Beetaloo Basin though the project remains subject to relevant approvals, and implementation of the exploration recommendations of the Inquiry into Hydraulic Fracture Stimulation in the Northern Territory.
Exploration and appraisal activities include the drilling and hydraulic fracture stimulation of two horizontal wells.
Falcon said that together with a third dry gas play known as Velkerri B discovered in 2016, this allows for the assessment of three plays, enabling the most commercially prospective play to be targeted for Stage 3 drilling during 2020.
“Work has already commenced at some well sites, including water bore drilling and water monitoring, with drilling targeted to commence in June 2019,” Falcon told the ASX.
The JV partners expect to spend $65m for the Stage 2 exploration and appraisal program, including the drilling and hydraulic fracture stimulation costs of two horizontal wells.
The supposedly gas-rich Beetaloo Sub-basin came into play after the NT Government’s decision to lift its hydraulic fracturing moratorium last year and the federal government has launched its own scientific study, the third and final region to be assessed by the Geological and Bioregional Assessment Program, following the Isa Superbasin and Cooper Basin in Queensland.
Philip O’Quigley, CEO of Falcon, said the announcement was an exciting development for Falcon shareholders as the JV prepares to commence drilling in the highly prospective Beetaloo Sub-basin. “We look forward to updating the market as work progresses over the coming months,” he said.
If proven the gas could supply the east coast via the Amadeus pipeline from Alice Springs to Tennant Creek and the NGP from Tennant Creek to Mount Isa.
While you are here subscribe to our weekly email to your inbox 6am Friday
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
