Falcon Outlines Drilling Plans for its Australia's Beetaloo Basin Assets
Ireland's Falcon Oil & Gas Ltd. provided Thursday the following technical and operational update for its operations in the Beetaloo Basin, Northern Territory, Australia.
2015 Drilling Program - Technical Results
The results from the in-depth shale evaluation program and petrophysical analysis of the three wells drilled in 2015 confirm the following:
- The Middle Velkerri and Kyalla shales offer stacked play fairways with continuity over a large proportion of the Beetaloo Basin and in various maturity windows (dry gas to liquid)
- Three pervasive, organic rich shale intervals were identified and characterized within the Middle Velkerri formation with excellent reservoir and completion quality. The identified “B” and “C” shales have thickness in excess of 131 feet (40 meters) each
- Amungee NW-1H, the first horizontal well in the program landed in the Middle Velkerri “B” shale encountering excellent gas shows and represents a highly prospective candidate for multi-stage hydraulic fracture stimulation
- Core analysis confirmed that the Middle Velkerri shale is organic rich, with average Total Organic Content (TOC) of 3 percent - 4 percent and is gas saturated
- Diagnostic Fracture Injection Test (DFIT) data revealed that the Middle Velkerri shale is 20 percent - 25 percent overpressured, which is encouraging from both a volumetrics and reservoir productivity perspective
- Favorable geomechanics indicates good frackabability within the Middle Velkerri shale
- Estimated gas in-place density ranges within the Middle Velkerri shales are comparable to successful North American shale plays
2016 Drilling and Testing Program - Objectives
The objectives of the 2016 Beetaloo drilling and testing program comprise:
- Testing gas productivity of the Middle Velkerri shale from the horizontal Amungee NW-1H well by means of a multi-stage hydraulic fracture stimulation program
- Proving the areal extent of the Middle Velkerri shale gas play towards the southern part of the Beetaloo Basin, through the drilling and testing of the vertical Beetaloo W-1 well, which is to be located approximately 53 miles (85 kilometers) south of the Kalala S-1 and Amungee NW-1H wells; and some 22 miles (35 kilometers) south of the Shenandoah S-1 well
- Testing of the shallower, condensate rich gas mature sections of the Middle Velkerri shale on the northern basin flank through drilling the second vertical well in 2016, located approximately 22 miles (35 kilometers) north of the Kalala S-1 and Amungee NW-1H wells within exploration permit (EP) 98
- Characterization of the Kyalla shale as a secondary target could provide upside and enhanced liquids potential
2016 Drilling and Testing Program - Operational Schedule
Preparations for the joint venture’s 2016 drilling, testing and hydraulic stimulation program are progressing and on schedule:
- Rig 185, commissioned from Saxon Energy Services Australia Pty. Ltd., has remained “warm stacked” at the Amungee NW-1H wellsite since November 2015 in order to commence operations as soon as weather conditions permit. Recomissioning of Rig 185 is expected to commence in mid-May 2016
- Re-entering the horizontal Amungee NW-1H well is scheduled for mid-June 2016, followed by a multi-stage fracture stimulation program to test the Middle Velkerri “B” shale reservoir
- Civil works at the Beetaloo W-1 vertical well are expected to commence mid-May 2016 with spudding expected in the third quarter of 2016
- The regulatory approval process for the drilling of the second vertical well within EP-98 is ongoing with spudding scheduled to commence immediately post drilling Beetaloo W-1 well
Philip O’Quigley, CEO of Falcon commented:
"I am delighted to update the market on the results of the in-depth shale evaluation program and petrophysical analysis carried out of all the technical data gathered on the three wells drilled during 2015. The results confirm early indications, as previously communicated, that this is a highly prospective basin."
"Falcon’s shareholders can look forward to another exciting year of exploration activity which has the potential to transform the value of your company. Falcon remains fully carried throughout 2016 by our partners Origin and Sasol."
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