Origin Energy has submitted a notification and initial report to the Northern Territory Government confirming the discovery of hydrocarbons at the Kyalla 117 N2-1H ST2 exploration well near Daly Waters, in the Beetaloo Sub-basin.
The notification of discovery is supported by preliminary production test data and petrophysical data. It follows recent work to introduce nitrogen to lift the fluids in the well, allowing it to flow unassisted for a measurable period.
Origin highlights that the initial report, based on early well flow data, is positive and shows:
- Unassisted gas flow rates ranging between 0.4 and 0.6 million standard cubic feet per day (MMscf/d) over a 17-hour period;
- Flow back of hydraulic fracture stimulation water to surface with an average rate of between 400 – 600 barrels per day (bbl/d) over the same period; and
- Initial observations indicate a liquid-rich gas composition with CO2 estimated at less than 1 per cent. Condensate shows were also present.
Origin Executive General Manager Integrated Gas, Mark Schubert, said the company is encouraged by the early results from the well, which has met their primary objective to flow liquids-rich gas from the Kyalla formation.
“To support the well to flow continually without assistance we will now put in place longer-term measures to flow back sufficient hydraulic fracture stimulation water, enabling production testing to commence in the coming months during the dry season,” Mr Schubert shared.
“This is the first well to be successfully drilled into the Kyalla formation and we continue to gather important knowledge and data that will inform and refine our ongoing exploration activity in the Beetaloo,” he said.
The notification of discovery and initial report are a requirement under s64(1) of the Petroleum Act 1984 (Northern Territory) and satisfies the requirements of the NT Guidelines for reporting a petroleum discovery.
Origin will provide further update when production testing has concluded, and detailed evaluation has been undertaken, expected to be in the second quarter of 2021.
The Beetaloo Exploration Project is a joint venture with Falcon Oil & Gas Limited.