ORIGIN Energy and its joint venture partner Falcon Oil & Gas are heading back to the Beetaloo, months earlier than first anticipated when the COVID-19 pandemic hit Australia.

The venture was forced to abandon fraccing plans and then completion of the Kyalla-117 appraisal well earlier this year after the pandemic led to movement restrictions and hard border closures. 

Kyalla has been labelled an exciting ‘well to watch' by many in the industry. 

Yesterday, the junior stakeholder Falcon Oil & Gas (22.5%) said the two companies would restart activities at the wellsite within months. Origin also mentioned its intention to be back in the region by the end of the year in its latest financial report. 

Subject to another breakout of coronavirus in the NT, Origin and Falcon plan to frac the well within this quarter or next. 

Once fraccing is completed, an extended production test will follow. The results of this test are expected late this year, or potentially early next. 

The test will form the basis of a commercialisation plan and future exploration for liquids and gas in the Velkerri formation across the basin. 

 

"We look forward to the next phase of operations with the fracture stimulation of the Kyalla-117 well and will update the market as results become available," Falcon chief Philip O'Quigley said. 

Falcon sold down a further 7.5% interest to operator Origin in April, an agreement aimed at cutting the junior partners' costs. 

Under the agreement Origin will carry Falcon for a further $25 million worth of future work at the well. 

Kyalla-117 was drilled to a total depth of 3809 metres with a 1579 lateral section in February. 

During drilling elevated gas shows with relatively high liquids were observed in all three of the target reservoirs encountered. 

If the well proves as commercial as the venture expects, there are multiple commercialisation opportunities, including the Amadeus to Moomba pipeline announced just yesterday by Australian Gas Infrastructure Group and Macquarie.

The new $1 billion pipeline will see gas from the NT piped directly to Santos' Moomba gas supply hub in South Australia. 

Source: Energy News Bulletin

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