RE: Cenkos15 Oct 2021 08:27
? Why Depth is Important Fundamental to the commercialisation of a shale gas resource is the balance between geology and economics. When you compare the published Velkerri data from the wells drilled across Falcon’s acreage (Kalala S-1, Amungee NW-1/1H and Beetaloo W-1) the geological parameters are remarkably consistent across the Beetaloo. As a result, one has to look at the economic aspects of a development in order to determine its commercialisation – and this is where depth comes in. The deeper the target the greater the development costs, however greater depth also usually means greater well deliverability and resource density. The key is finding the optimum depth window that balances reservoir deliverability and costs. As a result of the extensive work programme and the five wells drilled to date, Falcon has amassed a large suite of technical information, providing the Company with all the data it needs to establish the optimal location from which to prove the commercialisation of the Beetaloo.
Near Term Catalyst c.100km to the east of the Amungee NW-1H discovery, Santos and Tamboran Resources have completed the drilling of the Tanumbirini-3H vertical well to a target depth of 3,760m. The Middle Velkerri B shale was encountered in line with pre-drill expectations, with mud gas readings encountered within the Middle Velkerri B shale consistent with the data collected from the previously drilled Tanumbirini-1 and Tanumbirini-2H wells. Drilling of a c1,000m horizontal section in the Middle Velkerri B shale is to commence shortly, with the well anticipated to reach total depth by the end of October. After completion, a fracture stimulation operation will be conducted on both the 2H and 3H wells with preliminary flow test results anticipated to be available prior to the end of 2021. The results to date have been encouraging with the Tanumbirini-2H well encountering significant gas shows and pressures. Natural fractures, strong pressures and gas flows during drilling are typically indicative of a shale that will respond positively to fracture stimulation. The aim of the drilling programme is to establish commercial flow rates from the Velkerri dry gas play – the same play where Origin/Falcon discovered 6.6Tcf of gross contingent 2C resources as a result of the successful Amungee NW-1H well 2016 extended production test (EPT). The 6.6Tcf of 2C resources only covers an area of 1,968km2, immediately surrounding the Amungee NW-1H well, with any success by Santos/Tamboran likely to extend the Velkerri B shale dry gas play fairway to the east.
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