ORIGIN Energy and Irish joint venture partner Falcon Oil & Gas, have spud the Kyalla 117 N2 onshore appraisal in the Beetaloo Basin in the Northern Territory.

The big-budget Kyalla 117 N2 is the first of two wells the joint venture plan to have drilled by the end of this year, targeting the Kyalla shale liquids gas play in exploration permits EP117, EP76, and EP98.

The spudding of the well was met with cheers from both industry and the Northern Territory government, with both noting the symbolism of the well in marking a new era of investment for the Top End.  

"Origin successfully drilling in the Beetaloo is another significant milestone reached off the back of completion of all pre-exploration recommendations from the Pepper Inquiry in July, as part of their exploration program," NT minister for primary industry and resources Paul Kirby said.

Meanwhile industry lobby body the Australian Petroleum Production and Exploration Association said the resources being targeting would play a "vital role in revitalising the Territory's economy".

The horizontal well will be drilled to 1,750 metres depth into the Kyalla and Velkarri Formations before a horizontal section is drilled for approximately 1,000m. Once completed the well will be fracced and production tested.

In a statement yesterday Falcon said the principle objective of the well was to assess hydrocarbon maturity, saturation and reservoir quality of the formation as well as collect data for future drilling campaigns.

Source: Energy News Bulletin

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