ORIGIN Energy and its joint venture partner Falcon Oil & Gas have accelerated drilling plans in the Beetaloo Sub-basin, after preliminary drilling data from the Kyalla 117 N2 onshore appraisal well yielded exciting results.

In a statement this week Irish-headquartered Falcon, which holds a 30% interest in the well, noted Kyalla 117 N2 had now been completed to a total vertical depth of 1,895 metres.

During drilling the well showed elevated gas shows with relatively high liquids, which Falcon CEO Philip O'Quigley said represented an "excellent re-start to the Beetaloo drilling program."  

Operator Origin (70%) is now preparing to drill the horizontal section of the well within the Kyalla formation.

"The election by the joint venture to immediately proceed to the drilling of the horizontal section signifies the [partners] confidence in the potential of the Kyalla shale," O'Quigley said.

The JV also acquired 45 metres of conventional coring in each of the Upper and Lower Kyalla reservoir sections.

Sidewall cores and extensive wireline logging has also been acquired, though those results have not yet been released.

 "Electric logs calibration by core analysis results together with the planned fraccing of the horizontal section will give us a more quantative view on this play," O'Quigley said.

Once drilling of the horizontal section of the well is completed, it will be fracced and then production tested.

Production testing is expected to take around 90 days, and Origin plans to continue operations during the wet season.

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.

When the well was spud in October both industry and the Northern Territory government cheered the symbolic new era of investment for the Top End.

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".

Source: Energy News Bulletin

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