Falcon Oil and Gas is to bring forward horizontal drilling by a year following a successful second drilling programme in Australia’s Beetaloo shale basin.
The Irish exploration company said results from the Amungee NW-1 well very encouraging, with the well drilled to 2,611 meters and had encountered 500 metres of gross pay in Velkerri shale intervals, with 150 metres of net pay.
It also reported excellent gas shows from at least two prospective shale sweet spot within the Middle Velkerri formation.
Total organic carbon estimates range 2.5-5% within the best shale units representing a highly encouraging result in comparison with commercially successful North American shale gas plays.
Following the encouraging results of the first two wells, the Beetaloo JV partners have confidently decided to bring forward the drilling of the first horizontal well in the Beetaloo Basin, originally planned for the end of 2016, into October-November 2015.
Based on the high gas saturation and favourable shale properties encountered in the Amungee NW-1 vertical well, the “B Shale” Middle Velkerri has been selected as the target of a 1,000m horizontal section.
Chief executive Phillip O’Quigley”This is an incredibly exciting time for the company and a positive development for the joint venture,” said .
“Today’s news, not only demonstrates the huge commitment from our partners Origin and Sasol but it is a massive endorsement of the potential prospectivity of our Beetaloo acreage.”
O’Quigley added: “We remain fully carried with the drilling of the horizontal well due to commence imminently, 12 months ahead of schedule, which will assess hydrocarbon saturation and reservoir quality of the Middle Velkerri ‘B Shale’ formation.
“Subsequent multi-stage hydraulic stimulation of the Amungee NW-1H well will provide key technical information such as gas flow rates and delivery potential and, ultimately, help the JV to move as fast as possible to horizontal production test wells within the Middle Velkerri formation.”
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