Falcon Oil & Gas posted “very encouraging” results with its Beetaloo development.
The drilling campaign returned a gross interval of more than 570 meters shale gas sequence with net pay exceeding 150 meters.
It comes as the newly elected government in Australia introduced a moratorium on hydraulic fracturing in the country’s Northern Territory.
Chief Minister Michael Gunner said: “The moratorium on hydraulic fracturing of onshore unconventional reservoirs within the Northern Territory will remain in place until government has thoroughly considered the recommendations of the [independent scientific] inquiry.”
Falcon’s chief executive Philip O’Quigley added: “The results of Beetaloo W-1 to date and the successful hydraulic stimulation of Amungee NW-1H represent further positive steps for the exploration phase of the program. Encountering significant net pay in the Middle Velkerri formation, 85 kilometres from our 2015 drilling programme along with significant net pay in the Lower Kyalla formation is very encouraging.
“Updates to the market shall be provided as the evaluation of Beetaloo W-1 is completed and a steady gas flow rate is established on Amungee NW-1H. We will also provide further information on the moratorium as it becomes available.”