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Thanks OrsonM for helping to quell the hysteria trying to raise its head. I'm hearing this is a nice well - how nice - we will just have to wait and see. IMO we are within a week of an NR but as you mentioned no-one has a firm handle on that timeline. The Kyalla is out in the middle of friggin no-where - things do take longer. Patience all! Origin/Falcon will let us know when the initial flow rates are established - in the meantime ponder the possibilities!
NLC backs Origin Energy in Beetaloo Basin fracking stoush with traditional owners
The Northern Land Council has backed Origin Energy’s position in a stoush with traditional owners over its plan to frack the Beetaloo Basin.
THE Northern Land Council has backed Origin Energy in a stoush with traditional owners over its plan to frack the Beetaloo Basin, saying consultations were “appropriate and correct”.
Alawa Native Title holder Naomi Wilfred accused Origin of failing to listen to TOs who “would’ve said no to fracking” at the company’s annual general meeting this week.
But chairman Gordon Cairns said Ms Wilfred’s country was to the north of the land over which it held permits and said Origin had worked with the TOs nominated by the NLC who were supportive of its plans.
“We understand some TOs may oppose fracking but it’s also important to understand we are not exploring for gas or fracking on their lands or in their communities,” he said.
“The process we follow to maintain the ongoing support of Native Title holders involves sharing work programs in advance, undertaking scared site clearance surveys and participating in on-country meetings.
“To date, we have always received support for our planned activities, including hydraulic fracture stimulation.”
After the NT News requested clarification of the point, NLC chief executive Mario Scrymgour said the organisation was “confident” appropriate procedures were followed.
“The Northern Land Council is confident that appropriate and correct consultations were undertaken with the relevant traditional owners and native title holders of land regarding the activities of Origin Energy,” she said.
“The NLC has and always will comply with the statutory functions and duties imposed by the Aboriginal Land Rights Act and the Native Title Act, particularly in relation to consultations with traditional owners and native title holders.
“The NLC’s actions are always informed by and will always follow the instructions provided to it by the traditional owners and native title holders.”
Mr Cairns said Origin’s permit areas covered some 18,500km/sq spanning 10 pastoral leases over which Native Title had been established, with exploration work under way on four of those leases.
“The NLC has facilitated ongoing engagement with those groups who can speak for the areas where our exploration wells are located,” he said.
“For example, for our two current well site locations we have engaged with several family groups throughout 2018 and 2019.
“During 2020 we continued this engagement completing sacred site clearance surveys, visits to site and annual on-country meetings are scheduled for November.”
It guy: The court’s statement doesn’t make this clear IMO. I took it to mean someone acquired those shares. Maybe Origin? They are the.only ones that have the in-side track on this. Just. My conjecture :^) May be totally off base.
Fracking Beetaloo ‘no risk to water table, coronavirus safe’, Origin chairman tells AGM
Origin Energy has defended its plans to frack the Beetaloo Basin from accusations it could pollute remote communities’ water supplies and put them at risk from coronavirus.
Jason Walls, NT News
ORIGIN Energy has defended its plans to frack the Beetaloo Basin from accusations it could pollute remote communities’ water supplies and put them at risk from coronavirus.
Speaking at the company’s AGM on Tuesday, chairman Gordon Cairns said Origin was “assiduous about water management” and there was “no evidence that fracking actually in any way pollutes the water table”.
In taking questions from shareholders, Mr Cairns also rejected concerns it had recommenced bringing FIFO workers into the NT after having earlier suspended the practice due to the coronavirus pandemic.
“We obviously take our responsibilities very seriously here and we paused our activity to keep communities safe,” he said.
“We have resumed in line with government restrictions being eased and we will continue to take the health and safety of employees and our communities as the number one priority.”
Naomi Wilfred, a Native Title holder of Alawa land she said was impacted by Origin’s operations, said traditional owners were angry their opposition to the project had been ignored.
“Alawa people care a lot about our land because of our songlines, our sites and our future — our land is so important to us, especially water,” she said.
“Origin has not tried to seek consent for fracking from the traditional owners, and we will never give it.”
But Mr Cairns said the company only recognised the TOs nominated by the Northern Land Council, who were supportive of their operations.
“It was a privilege to host those Native Title holders on site last month during fracking operations, they were able to inspect the equipment and talk with our specialists about how the process is safely undertaken," he said.
“They actually want us to come because they can see the economic benefits that will accrue to them as a result of us being on the land.
“We also have committed to them that their land and water will be protected.”
cont.......
Ultimately, the Moomba CCS Project has the potential to store up to 20 million tonnes of carbon dioxide per annum, the company says.
"We will need an approved methodology for CCS to be in place with the Clean Energy Regulator before we take a final investment decision on our Moomba CCS Project because carbon credits are essential to make it stack up economically with the cost of abatement still at around A$30 per tonne," Mr Gallagher said.
"Our aim is to drive these costs lower with scale and experience, but the first step is to generate carbon credits to enable initial development.
"Last year, Moomba celebrated its 50th birthday as a provider of reliable, affordable energy to the eastern seaboard. We are growing production in the Cooper Basin again, and that, combined with the Moomba CCS Project, has the potential to make Moomba a vital supplier of clean energy for Australia for another 50 years, supporting thousands of skilled, secure, well-paying jobs and decarbonising energy at its source.
"The initial project would support around 230 new South Australian jobs through construction.
"Our Moomba CCS Project is one of the most globally competitive projects - it will be the second largest in the world and one of the lowest cost project at our current estimate of around A$30 per tonne."
Mr Gallagher said this successful test along with recent Federal government announcements paves the way for large-scale CCS to drive down Australia's carbon emissions. Experts, including the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change have identified CCS as a critical technology to achieve the world's climate goals.
Energy companies say gas testing in Beetaloo is 'better than expected'
Chris McLennanChris McLennan
Energy companies continue to be excited over the initial results from the testing of gas exploration wells in the Beetaloo.
In a report to investors today, Santos said production testing at the Tanumbirini-1 vertical well east of Daly Waters resumed last month and results "significantly exceeded expectations".
The production test recorded an initial peak gas flow rate of 10 mmscf/d (million cubic feet per day) and an average rate of 1.5 mmscf/d during the first nine days of testing.
"The results at Tanumbirini-1 provide critical data to inform the next phase of appraisal, which is expected to include two horizontal wells with multi-stage stimulation commencing in 2021," the company said.
"The recent test results provide further confidence there is potential to achieve economic flow rates from multi-stage horizontal wells."
Origin Energy is expected to soon release details of its production tests after it resumed activity at its Kyalla well site near Daly Waters in the Beetaloo after a six month stand down.
The Kyalla well, drilled almost two kilometres deep late last year, has been fracked for the production testing.
Initial results from this are expected by the end of the year, with full results in the first quarter of 2021.
Origin has reported they found a 900 metre gas-rich layer of shale during the vertical drilling.
Junior explorer Empire Energy told the stock exchange earlier in the month it had discovered what is believes it is a big reservoir of liquids rich gas at its Carpentaria-1 well site about 85km south-west of Borroloola.
The gas was found shallower than expected and across a layer of shale almost a kilometre thick.
The explorers like Empire, Origin and Santos are looking for gas in two shale layers, the more prospective Kyalla and the Velkerri which Empire has intersected.
Empire said it would now prepare the well for fracking tests and a flow testing program early next year.
Australia's Energy Minister Angus Taylor visited the Beetaloo to inspect the Empire Energy well last week to build on the Federal Government's gas-fired recovery plan.
The government has made the Beetaloo a priority for development.
Meanwhile, Santos says it has successfully injected approximately 100 tonnes of carbon dioxide deep underground into depleted gas reservoirs as part of the final field trial for the Moomba Carbon Capture and Storage Project in South Australia.
Santos managing director and chief executive officer Kevin Gallagher said the successful injection occurred earlier this month in the Strzelecki field in the Cooper Basin and Santos would now finalise technical and commercial arrangements with the aim of having the 1.7 million tonne per annum project ready for Final Investment Decision by the end of the year.
cont...
Poods: I know the name but don’t personally know the gentleman. He’s associated with the oil industry but that’s the extent of what I know of him. I want to think I met him through a George W. event but wouldn’t swear to that.
Interesting thought on the stacked play. I don’t think Origin would complete out of the same hole - if you drill a successful first Kyalla well and then screw up the hole in a Velkerri play your screwed! It’s done at times but I know the big players here in the Permian just walk the rig over. In a field development the well might be drilled down to deepest play and only attempt to complete the secondary zone after the primary zone depletes. I’m hearing people are very pleased with with the Kyalla test. If that holds up the rig would likely remain in place - do they drill another Kyalla test or move to drill two stage3 wells on the same pad? If they initially skip the Velkerri wet #76 well do they drill that at some point after they are through with the Kyalla 2 stage 3 wells - would be nice but we will just have to see how things develop. So many opportunities - so few wells to prove them out.
I’m thinking the initial flow test will be completed within about a week. The Kyalla well has had sufficient time to clean itself up - Just my opinion. Here’s hoping for gang buster results!!
Newtofo: Maybe I wasn’t clear - Davy’s 40p was for the Amungee well including the area assigned in the 2C resources. This acreage covered 12.5% of the Beetaloo. If Origin were to step out and drill two additional Velkerri wells then it might be possible to prove up 2C resources on 37% of the Beetaloo’s Velkerri B which is said to cover 97% of the concession. Would Origin step out or drill immediate offsets in the current 2C area - don’t know. If they drill to prove commerciality in the current 12.5 , with success, they greatly de-risk the 6.6 TCF play.
Not every new well would add another 40p unless they prove up additional 12.5% blocks if that makes sense. At the end of the day Falcon,s biggest problem is they don’t have enough wells to prove up the the concession - whether that is the Velkerri, Kyalla, Hayfield, or really ideal all three.
There is not way each well would be worth 40p in a field development situation - not what I was trying to say.
Hopefully the future drilling will focus on the Kyalla but then we have the same discussion - do you prove up 2C on vast blocks or go for commerciality - that I really don’t know. Maybe by the end of the year the picture clears.
Hope this better clarifies what I was trying to say. On the road and on a friggin iPad so maybe not the best answer.
I believe the Davy evaluation will be extremely under-valued if we get the anticipated good news from the Kyalla 117. In Davy's evaluation they risked the Kyalla at 12% - if the Kyalla makes a nice well I believe that risk will be lifted to 60% or so. The Kyalla evaluation IMO should be on par in not more than the Amungee. If one amungee well is worth 40p to Davy what would a total of three Amungee wells be worth if stage3 were drilled - add to that a hopefully nice Santos well to the east helping prove up the acreage in between. If the Kyalla produces the same volume along with the condensate three (maybe 4?) Kyalla wells could be worth more than three Amungee wells. Of course if 3-4 good Kyalla wells are drilled the Kyalla would be declared a commercial discovery IMO resulting in a lot of the remaining risk will being removed. I don't recall Davy assigning any value ($200+/acre?) to anything outside of the already declared 2C Amungee well resources - that needs to be added in the equation as that acreage certainly contains lots of potential. I don't have time to go through my all my thoughts right now - packing for a trip - but I still see $2/share written all over this stock with a nice Kyalla well. I know some see more, some less. I'm not a reservoir engineer so take this for what it's worth - which is not much!
Here is the NT article behind the paywall - Not much to it IMO.
Federal plan for NT gas gathers pace as Angus Taylor flies to Beetaloo
THE Morrison Federal Government is following through on its pledge for the Territory’s Beetaloo Basin to have first priority in a gas lead recovery of the nation’s economy
GARY SHIPWAY, NT News
|October 15, 2020 10:30pm
Beetaloo chosen as first of five Federal Govt gas basin projects to lead Australia’s economic recovery
Exploration companies resume rich Beetaloo gas exploration program
THE federal government is following through on its pledge for the Territory’s Beetaloo Basin to have first priority in its $28.3m Strategic Basin Plans for a gas-led recovery of the nation’s economy.
Energy and Emissions Reduction Minister Angus Taylor has flown into Darwin and will visit Empire Energy’s test drilling program at its Carpentaria-1 site in the Beetaloo Basin tomorrow.
“The Beetaloo Basin is a world-class resource that has the potential to drive significant development in the Top End to create local jobs and help Australia remain a world leader in gas,” Minister Taylor said.
“The government’s Strategic Basin Plans will accelerate this development, driving investment and job creation in our regional and Indigenous communities as we recover from COVID-19.
“The Beetaloo Basin has the potential to supply more gas to Australian homes and manufacturers, helping to increase competition and drive down gas prices across the market. This will mean more Australian gas is working for all Australians.”
Beetaloo was chosen as the first location for the first Strategic Basin Plan to capitalise on industry momentum and to build on existing government initiatives in that region.
Minister Angus Taylor will visit Empire Energy’s test drilling program at its Carpentaria-1 site in the Beetaloo Basin. Picture: NCA NewsWire / Gary Ramage
This includes the $8.4m already committed by the government to accelerate the development of the Beetaloo Basin, including conducting additional environmental work and work to ensure the gas development will benefit the Aboriginal Peoples of the Barkley Region and the Northern Territory.
“Our Strategic Basin plan will drive more jobs in regional Australia and provide the cheap, reliable energy industry needs to grow manufacturing.”
While visiting the NT, Minister Taylor also held talks with Northern Territory Minister Renewables and Energy Minister Eva Lawler MLA, to discuss a joint federal and Territory energy and emissions reduction agreement.
The federal and NT governments signed an agreement in late 2018 to work together to develop the Territory’s gas industry.
I'm a very optimistic Falcon Holder but I must say Mr. Solyomtwo is going to be an awfully disappointed Falcon Holder. I for one would be tickled pink with $2/share. Of course that's just my opinion and to each their own. If you tried to give me $10/share I guess I would take it with a big fat smile on my face :^)
dprussky: Must not have made myself clear on the Velkerri wet well post. Sometimes the humor doesn't show through on a post. I am very optimistic on the Kyalla and the Velkerri wet. My comment was intended to say that the Kyalla production/economics might be so good that Origin/Falcon decide to take that path through to a Declaration of Discovery - bypassing the Velkerri Wet (which could be even better?) and the Velkerri dry (a know huge discovery). POQ's silence is just POQ's style and game plan - Empire is at a point of trying to raise money to begin horizontal drilling and fracking - I suspect there is a lot of self -serving promotion in their NRs - I understand people's frustration to see Empire's hyping and crickets out of Falcon As we all know, Falcon is just along for the ride at this point - Falcon is fully carried and have no great need to begin promoting something that is not yet known. Back to the same old issue - Falcon is not a retail stock play (as is Empire) and in Philip's/board's mind they are playing their hand to ultimately sell the Beetaloo assets - that is where Falcon's stock evaluation true value comes into play. Rest assured that the large potential buyers of Falcon's interest know what is going on the the company - no hype needed.
ITGUY: In regards to your comment of an Amungee discovery 2 weeks after a NR on the initial flow rate - Origin intentionally holds 'news' to help control leaks of non-sanctioned well information. In the case of the Amungee I suspect the initial flow rate test was held tight a month or more. Origin stated in its discovery declaration that the well had been flowed 57 days - as I have mentioned I think the timing for the EFT was shortened to get the good news out prior to shut down by the approaching NT moratorium - the Amungee well discovery changed the whole discussion of fracking in the NT - the decision by Origin/Falcon to immediately proceed with fracking rather than drilling another vertical test well was a brilliant move by Dr. Close.
You can take the NR on the completion of fracking the Kyalla and back up that date by one to two weeks. From that date you can mark you calendar for about 90 days for the EFT results (approximately the end of this year). The only reason I think that window might be shortened is if the initial flow rate and the following couple of months look extremely positive to the extent that another Kyalla well might be immediately considered. If the rig is still on site as we have been led to believe is possible to begin drilling another well during this wet season?? That would help towards getting the final two stage 3 wells drilled next season.
Thanks Newtofo and OrsonM for making the connection on the Velkerri wet. This is great news for Origin/Falcon on the proposed permit #76 Velkerri wet gas well. Sadly we as Falcon owners may never see what type of potential our Velkerri Wet well holds - SAID WITH A SMILE ON MY FACE! I have said since the start Falcon did not have sufficient wells to prove up this huge Beetaloo concession. If the Kyalla holds the potential we all hope then the Velkerri dry and Velkerri Wet will be an asterisk to this project's potential when Falcon puts together an their sales package. All is good and at the same time its nice to have fall back positions. Thanks Guys!
Oleo: I am not an engineer but will attempt to answer some questions to the best of my ability.
During fracking thousands of barrels of frack fluid mixed with proppant (sand) is pumped downhole - the extreme over pressuring of this fluid along with the natural pressure of the well will force the recovery of this fluid leaving much of the sand(proppants) in place as the well cleans itself up. Most of the proppants remain locked in the formation holding the fractures open for gas to flow to the well bore. As the frack fluid is recovered the well well cleans itself up and the volume/pressure of the gas/distillates will increase. At some point the engineers will deem the well sufficiently clean to initiate the initial 24 hour flow test constantly monitoring/gauging the volume/pressure/fluid content - I don't know how long it takes for the well to clean itself prior to this initial test but just guessing I would say 2 - 3 weeks??
This well has been fracked in 11 stages. In order to sufficiently pressure/frack each stage it is required that the well be plugged after each stage before fracking the next stage - they will back themselves out of the hole with each stage. After the fracking is completed the plugs will be removed.
Is nitrogen used to help with the hydrostatic pressure the well? - Don't know is that would be required. Was coiled tubing utilized? - The well bore is cased as the horizontal is drilled and then the casing is perforated prior to fracking - I don't know why coiled tubing would be utilized in this type of well. Oleo: I'm out of the office but there are schematics of the Judge Pepper requirements for wellheads/casing in many of the reports Origin/Falcon have put out - that would answer that question. I do recall Origin complaining that these wells were way over engineered to the point it may them less safe - but then Pepper's merry band of NON-experts overruled those that knew better - still a sore spot with many in the industry.
AGAIN - I am not an engineer so take all of this with a grain of salt. I could be dead wrong on much of this. If there is an engineer (Nano?) around please help the board/myself out in understanding the finer details of this type of fracked wells.
I remember when I was young that one could literally stand outside at night and read the paper by the light of gas being flared. I passed a huge flare today headed out of town - it was about 100 yards off the road - made me hope for that kind of volume on the Kyalla/Amungee though that is discouraged more and more nowadays.
Hey Poods: Not really surprised that Cenkos can't find a home for Sweetpea's stock at this juncture. With the soon to be released 24 hour initial flow test giving investors an indication of the Kyalla 117's potential it might be prudent for a buyer to have access to that flow test data before pulling the trigger. I have heard scuttlebutt that there are buyers in the wings. If the Kyalla 117 is good then these buyers will pay up - IMO that's more prudent than buying this position today to find out in a couple of weeks that the well is marginable or mediocre at best and watching their newly purchased block drop in value. If the well is as good as we hope meets expectations then we know where the next stage2 well is going to be drilled and the outlook for Falcon's position is greatly enhanced. Not that I have the money to buy that block but that would be the way I would play the Sweetpea stock game.
I would caution anyone new to the industry to be aware that this 24 hour test is only an indication of potential - what Falcon and Origin want to see is what the well is doing in 30, 60 and most importantly 90 days. A great initial 24 hour test could be very encouraging. If I recall correctly, Origin flowed the Amungee well for 57(?) days - maybe because they saw the NT's moratorium raising it head and wanted to make their amazing discovery announcement before the sh*t completely hit the fan and Pepper assembled her Scientific Board of NON-Experts to define industry regs of which they knew little about (JMO).
GLA
A link to another nice article appearing in the Katherine Times - "All eyes turn to the Beetaloo, the nation's El Dorado"
"Depending on who you talk to, there's enough gas down there to supply the nation for hundreds of years."
"Origin Energy, the owner of the Amungee well we visited after their successful tests, calls it the most promising shale gas resource anywhere in the world."
https://www.katherinetimes.com.au/story/6925870/all-eyes-turn-to-the-beetaloo-the-nations-el-dorado/?cs=1459
Carboncub: The Velkerri 'Flank' is just another name for the Velkerri wet gas play. Called the flank because it is located on the edge of the Velkerri where the formation shallows - its the second stage2 drilling location on the east edge of Falcon's Beetaloo concession.