Stage 2 – Explore & Appraise Additional Play Types
The Stage 2 exploration and appraisal drilling program will evaluate the potential of the liquids rich gas fairways in both the Kyalla and Velkerri shales to determine the most commercially prospective play to be targeted during Stage 3. Field activities planned for 2019 will include the drilling of one vertical well and the drilling and hydraulic fracture stimulation of two horizontal wells.
An early commitment to Stage 3 capital expenditure during 2019 was also agreed, enabling an efficient transition from Stage 2 to Stage 3, in the case that Origin and Falcon agree to proceed to Stage 3.
Stage 3 – Test the Best
Stage 3 will focus on the most prospective play type identified in Stage 1 and 2 by drilling and hydraulic fracture stimulation of two horizontal wells.
21 January 2019 – Rig Contract Signed
On 21 January 2019 Falcon announced that Origin had signed a rig contract with Ensign Australia Pty Ltd. for Rig 963 for the 2019 Stage 2 Beetaloo drilling programme, with an option to extend the contract into 2020.
Subject to relevant approvals, and implementation of the exploration recommendations of the Inquiry into Hydraulic Fracture Stimulation in the Northern Territory, the JV will evaluate the potential of the liquids-rich gas fairways in both the Kyalla and Velkerri plays. Exploration and appraisal activities include the drilling and hydraulic fracture stimulation of two horizontal wells. Together with the Velkerri B dry gas play 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.
As of 21 January 2019 work had already commenced at some well sites, including water bore drilling and water monitoring, with drilling targeted to commence in June 2019.
3 May 2019 – Kyalla 117 N2 Exploration Well EMP Accepted for Assessment
On 3 May 2019, Falcon announced that the Environmental Management Plan (“EMP”) for the Kyalla 117 N2 Exploration well, for the planned 2019 drilling, stimulation, and well testing prepared by Origin on behalf of the JV, has been accepted for assessment by the Northern Territory Department of Environment and Natural Resources (“DENR”).
The EMP provides detail on how Origin will ensure the environmental impacts and risks associated with its activities are reduced to a level that is as low as reasonably practicable and acceptable. The EMP has been prepared with reference to regulatory obligations and relevant Inquiry recommendations that have underpinned the Code of Practice for Petroleum Activities in the Northern Territory.
22 August 2019 – Kyalla 117 N2 Horizontal Appraisal Well EMP Approved
On 22 August 2019, Falcon announced that the EMP for the Kyalla 117 N2 horizontal appraisal well, had been approved by DENR.
Kyalla 117 N2 Horizontal Appraisal Well
- The well is targeting the Kyalla shale liquids rich gas fairway
- Construction of the well pad and related civil works is nearing completion
- Drilling operations will commence in September
9 October 2019 – Spudding of the Kyalla 117 N2-1 Appraisal Well
On 9 October 2019, Falcon announced the spudding of the Kyalla 117 N2-1 appraisal well in the Beetaloo Sub-Basin.
- Kyalla 117 N2-1 is the first well in the Stage 2 drilling programme to target the Kyalla shale liquids rich gas play.
- Located within Exploration Permit 117 approx. 32 kilometres north of the Beetaloo W-1 well.
- A vertical pilot hole will target a total vertical depth of approximately 1,750 metres into the Kyalla Formation.
- A subsequent horizontal section is planned for approximately 1,000 metres that will be drilled, completed, stimulated and production tested in the prospective Kyalla shale reservoir interval.
- Origin Energy B2 Pty Ltd (“Origin”), as Operator, will drill the Kyalla 117 N2-1 well.
- Origin hold a participating interest of 70% and Falcon Oil & Gas Australia Limited hold the other 30% participating interest over the Beetaloo Exploration Permits, 76, 98 and 117.
The principal objectives for the drilling of the Kyalla 117 N2-1 well are to:
- Penetrate the Kyalla Formation to assess hydrocarbon maturity, saturation and reservoir quality.
- Provide further information on the areal distribution of the Kyalla Formation.
- Collect data for subsequent horizontal drilling, completion, stimulation and production testing; including ability to flow liquids rich gas.
Formation evaluation, including reservoir characterisation, will be carried out through petrophysical interpretation, geo-mechanical studies and core analysis.