Falcon Oil & Gas – which has a 30 per cent stake in 4.6mln acres within the Australian Northern Territory – has kick-started its nine-well campaign to assess shale deposits in Australia. The project, which includes drilling first five wells at a cost of A$63mln, is operated by Falcon in cooperation with Australian firm Origin Energy and South African energy major Sasol.
Falcon announced that it has commenced its 2015 three well drilling and evaluation programme in the Beetaloo Basin, Northern Territory, Australia, by starting exploration work on the first well, “Kalala S-1”. The Kalala S-1 well is located within exploration permit 98, with access from the existing Carpentaria Highway and will be drilled to a total depth of approximately 2,800 meters, which is expected to take approximately 35 to 50 days.
The well is targeting the Middle Velkerri formation to assess hydrocarbon saturation and reservoir quality. Falcon is fully carried for all 2015 drilling and evaluation costs, retaining its 30 per cent interest in the Beetaloo Basin with co-venture partners Origin and Sasol. Kalala S-1 is to be operated by Origin Resources Limited (35 per cent) with partners Sasol Petroleum Australia Limited (at 35 per cent) and Falcon (30 per cent).
It is anticipated that the mobilisation of the rig to Kalala S-1 well site will happen shortly with the spudding of this first exploration well on target for the end of June.
“We are delighted to announce the commencement of drilling operations and the expected spudding of the first of our three well fully funded drilling campaign by the end of June 2015, in this highly attractive basin,” said chief executive Philip O’Quigley.
“We look forward to exploring the potential of the Beetaloo Basin in Australia with our partners and updating the market with further details in due course,” he added.
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