Preliminary results of second Beetaloo well

Falcon Oil & Gas Ltd has announced that drilling operations have successfully concluded on the Amungee NW-1 well. Results encountered are very encouraging, with the well drilled to a total depth (TD) of 2611 m.

Preliminary evaluation of the Amungee NW-1 vertical exploration well confirms:

• The continuation of the Middle Velkerri formation 25 kilometres east of the first 2015 Beetaloo Basin well drilled, Kalala S-1, falling in a highly prospective gas mature depth window.
• A gross interval of over 500 m shale gas sequence with net pay exceeding 150 m.
• Excellent gas shows from at least two prospective shale sweet spots within the Middle Velkerri formation.
• Total organic carbon (TOC) 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.
• Gas mature, highly saturated shale gas interval identified in the "B Shale" as immediate horizontal drilling target.

A total of 36 m full diameter core, 50 sidewall cores and extensive wireline log data were acquired that, together with the highly positive data from the Kalala S-1 well, will enable the JV to perform an in-depth evaluation of the physical properties of the prospective shale intervals including gas saturation, TOC, reservoir pressure, frackability (mineralogy, rock mechanics) and petrophysics (porosity and permeability).

Acceleration of Drilling Program with First Horizontal Well brought forward to 2015

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 1000 m horizontal section representing the "Amungee NW-1H" well.

Highlights:

• The purpose of drilling the Amungee NW-1H horizontal in 2015 and its subsequent multi-stage hydraulic fracturing in 2016 is to prove the technical viability of the highly prospective Middle Velkerri shale gas play.
• Amungee NW-1H will target the Middle Velkerri "B Shale" reservoir based on high gas saturation and excellent reservoir quality experienced in both the Kalala S-1 and Amungee NW-1 vertical wells.
• The "B Shale" is approximately 45 m (150 ft) thick, a rock volume well suited to multiple hydraulic fracture stimulation.
• Falcon remains carried until the end of 2018 and this acceleration in the work program will have no financial impact on the Company.

Diagnostic Fracture Injection Tests (DFITs)

The JV partners have agreed to expand the exploration program by introducing Diagnostic Fracture Injection Tests ("DFITs") on all of the vertical wells drilled in 2015 and 2016. DFIT is the most adequate tool to obtain reservoir quality data, such as pressure and permeability and completion quality data, all pertaining to the prospectivity of the Middle Velkerri shale gas play. There is no cost impact on these additional positive measures for Falcon.

Philip O'Quigley, CEO of Falcon, commented: "This is an incredibly exciting time for the Company and a positive development for the JV. 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. 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."

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/22102015/preliminary-results-of-second-beetaloo-well-1442/