RE: RNS4 May 2022 08:02
As noted in Falcon's press release published on 25 January 2022, this year will see Falcon and Origin progressing to the Stage 3 work programme of the restated Farm-Out Agreement. Following discussions with Origin, in order to maximise the impact of Stage 3 operations the joint venture has agreed to modify the Stage 3 programme announced previously, which will now include a step out location for one well.
Stage 3 Planned Work Programme includes:
-- Acquisition of a 58km line of high spec 2D seismic on the Amungee NW-1H
well lease area;
-- Drilling one 1,000 metre horizontal well on the Amungee NW-1H pad,
targeting the Amungee Member (formerly knowns as the Middle Velkerri) B
Shale;
-- Step out location approx. 10km from the Amungee NW-1H pad, drilling a
vertical pilot and a 1,000 metre horizontal well also targeting the
Amungee Member B shale;
-- 15 stage fracture stimulation on both horizontal wells;
-- Extended production testing of between 90 and 180 days on each well;
-- As previously announced there will also be:
-- follow up core and log analysis of the very encouraging
preliminary evaluation of the 2021 Velkerri 76 well results; and
-- further evaluation of the results of the Kyalla 117 N2-1H well to
better understand the issues encountered during testing in 2021.
Stage 3 Drilling and 3D Programme Objectives:
-- The primary objective of the two wells is to:
-- Obtain a production rate over the first 30 days of between 2-3
MMscf/d to support a multi-well pilot programme in 2023/24.
-- Secondary objectives for the Stage 3 programme are to:
-- Achieve a drill duration of less than 45 days;
-- Characterise natural fracture network and complexity; and
-- Integrate well data with seismic data and assess merits of future
3D seismic surveys in the Beetaloo.
Philip O'Quigley (CEO of Falcon) commented:
"This is an extremely important period for the Beetaloo Sub-Basin and Falcon believes the modified work programme which now includes a step out location will provide further valuable evidence and help accelerate the programme towards a multi-well pilot programme in CY23/24.
The 2021 EPT and PLT at Amungee NW-1H provided a line of sight to achieving initial production rates in the range of 3+ MMscf/d per 1,000 metre laterals from the Amungee Member B Shale. Together with the large contiguous acreage position offering significant running room, the stacked prospective Amungee Member shale targets with multiple landing zones, and the proximity to the northern flank to integrate future wet gas play support a route to commerciality.
We will continue to update the market on this high-impact and extensive Stage 3 programme over the coming months."
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