AUSTRALIAN LNG giant Origin Energy and its venture partner Falcon Oil & Gas have completed 11 stages of fraccing at the highly anticipated Kyalla-117 well in the Beetaloo Basin of the Northern Territory.

Late Friday, Falcon Oil & Gas, which holds a 22.5% stake in the Beetaloo project, told shareholders operator Origin Energy (77.5%) had completed an 11-stage fraccing program across the high-profile, high-cost, Kyalla-117 well. 

The fraccing program aimed to stimulate 11 sections across a 1579-metre horizontal section of the well targeting the Lower Kyalla Formation. 

With the fraccing activities now complete, the venture is preparing for flowback and an extended production test. According to Falcon, early stage gas flow rates are expected in the coming weeks. 

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

Initial results from the flow test are expected in the coming weeks, and full results from the production test should be available within the first quarter of next year. 

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 across all three of the target reservoirs. 

Origin is paying the full amount of the current operations, up to A$25 million, as part of its farm-in agreement with Falcon. 

Source: Energy News Bulletin

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