THE FALCON Oil & Gas (30%) and Origin Energy (70%) joint venture have accelerated plans for the second stage of its upcoming exploration and appraisal program in the Beetaloo sub-Basin, signing a rig contract with Ensign Australia and outlining activities for the next 12 months.
The Beetaloo is considered one of the most prospective parts of the Northern Territory and now the Top End has lifted its fraccing moratorium, albeit with 135 conditions, Origin and Irish partner Falcon have committed to conducting the appraisal program over the coming months and have already begun work at some well sites including water bore drilling and water monitoring.
The drilling program will include two horizontal wells and one vertical well, the first of which will spud in June.
The Stage 2 Cost Cap is approximately A$65m for the exploration and appraisal program, including the drilling and hydraulic fracture stimulation costs of the two horizontal wells.
The focus will be on the liquids-rich Kyalla Formation and Velkerri Shale. 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 next year.
Falcon CEO Phillip O'Quigley said the announcement was an exciting development for shareholders.
"We look forward to updating the market as work progresses over the coming months," he said. Source: Energy News Bulletin
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