FALCON Oil & Gas said yesterday sidetrack drilling has commenced at the new horizontal production hole section of the Kyalla 117-N2 well in the Beetaloo Sub-basin it shares with operator Origin Energy (70%).

The environmental management plan for both drilling, fraccing and testing the wells was approved by the Northern Territory government in August last year.  

It is the second horizontal well following Amungee NW1-H in 2016 which was completed just before the moratorium was introduced in the Top End several years ago.  

In early December Falcon vertical drilling was completed to a depth of 1,800m. 

Initial evaluation of the vertical section found three source rock reservoir sections identified within the Kyalla Shale Formation, with a thickness measuring almost 900m. 

The three sections are known as the Lower, Middle and Upper Kyalla reservoirs. Gross thickness of each interval is between 75m-125m. 

According Origin all three sections exhibited "elevated gas shows with relatively high C3, C4, and C5". 

Falcon said the new horizontal section will again target a later length of 1000-2000 metres within the Lower Kyalla shale at a depth of 1800m.  

Drilling results to date have been encouraging and Falcon remains very optimistic about the potential of the Lower Kyalla shale play," Falcon CEO Phillip O'Quigley said. 

Last year the company raised A$12.66 million through a placement to fund its share of the work program in Australia.

Source: Energy News Bulletin

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