ORIGIN Energy and its smaller Irish joint venture partner Falcon Oil and Gas have begun fraccing the Kyalla-

On Monday afternoon Falcon Oil and Gas, which holds a 22.5% stake in the Beetaloo project, told shareholders operator Origin Energy (77.5%) had commenced fraccing activities at the high-profile, high cost Kyalla-117 well. 

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

The appraisal well has been labelled a "well to watch" by analysts and industry. The success of the well is seen as a litmus test of the prospectivity of the new frontier region and the challenges other operators, including Santos and Empire Energy may encounter.

Consultancy EnergyQuest put the well on its watch list last year, meanwhile the NT government has heralded it as a "new era" of domestic gas exploration. The peak body for the oil and gas sector, the Australian Petroleum Production Exploration Association has previously said the well would play a "vital role" in the future of the Beetaloo Sub-basin.

Kyalla-117 was drilled to a total depth of 3809 metres with a 1579 lateral section in February this year. Total costs of drilling and completing the well are expected to be in the range of $50 million. 

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

It aims to test the extent of the Velkerri liquids-rich gas play. 

After fraccing the next phase of operations will be to production test the well. 

"Initial results from this are expected by the end of the year, with full results in the first quarter of 2021," Origin said on Monday.

Source: Energy News Bulletin

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