Page 10 - AsianOil Week 03 2021

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Origin strikes gas at Beetaloo shale play

PROJECTS & AUSTRALIAN developer Origin has The company said it would provide a further
COMPANIES announced the discovery of hydrocarbons at its update once production testing had concluded
exploration well in the Northern Territory’s Bee- and a detailed evaluation had been undertaken,
taloo Sub-basin. with this anticipated to be in the second quarter.
The company said on January 19 that it had The Beetaloo is one of the most promising
submitted a notification and initial report to the shale plays outside the US and has attracted an
NT government confirming the discovery at increasing amount of support from the Austral-
the Kyalla 117 N2-1H ST2 well, which is located ian government, which is looking to bolster gas
close to Daly Waters. production, lower prices for domestic industry
Origin said early test data showed unas- and spur on a local manufacturing boom. Can-
sisted gas flow rates of 400,000-600,000 cubic berra unveiled additional funding for infrastruc-
feet (11,328-16,992 cubic metres) per day over a ture projects in the NT last week, which should
17-hour period. The company’s initial observa- help speed up the Beetaloo’s development.
tions indicate a liquid-rich gas composition with The government intends to provide an addi-
a carbon dioxide (CO2) content of less than 1%. tional AUD217mn ($167.9mn) of funding for
Condensate shows were also present. local road upgrades, in addition to the previously
Origin’s executive general manager of integrated announced AUD50mn ($38.7mn) in grants for
gas, Mark Schubert, said the early well results had exploration drilling in the sub-basin. The funding
met the company’s primary objective of flowing is part of the Beetaloo Strategic Basin Plan, which
liquids-rich gas from the Kyalla formation. aims to help developers more quickly reach a final
He added: “To support the well to flow con- investment decision (FID) on their projects.
tinually without assistance we will now put in “Our plan aims to accelerate these develop-
place longer-term measures to flow back suffi- ment stages. Our objective is to bring forward
cient hydraulic fracture stimulation water, ena- the final investment decisions of Beetaloo
bling production testing to commence in the development to 2025 or earlier,” the Australian
coming months during the dry season, which Department of Industry, Science, Energy and
runs from May to October.” Resources’ said at the plan’s launch.™

Talon to expand footprint in WA’s onshore

FINANCE & AUSTRALIAN junior Talon Petroleum is set The junior added: “Although further geo-
INVESTMENT to expand its holdings in Western Australia’s physical surveying will be needed to determine
onshore Perth Basin after agreeing to buy a 100% whether Muchea can be matured for drilling,
stake in the Muchea play from Macallum. initial mapping shows a high relief structure up
Talon said on January 20 that it had entered to 80 square km in size.”
into a non-binding term sheet with Macallum The company intends to conduct a AUD100,000
for the area covering the Muchea Structure in ($77,000) airborne audio electromagnetics using a
EP494 and SPA-0081. Talon has agreed to pay passive transient pulses (AEM-PTP) survey. Talon
Macallum AUD90,000 ($69,000) once the term noted that drilling costs for the play might only
sheet is executed, with the latter to receive 54mn be “moderate”, given that the conventional, Juras-
Talon shares once formal agreements have been sic-age target reservoirs had been mapped at depths
finalised. Talon said Macallum would receive below 2,200 metres. The Muchea structure, as
AUD350,000 ($269,000) worth of its shares as currently mapped, has other trapping attributes
well as a 1.95% overriding royalty on produc- that Talon has high graded for specific targeting.
tion from Muchea once it has completed initial The company is continuing with these studies
exploration work and has opted to proceed with and hopes in future to add further projects with
final acquisition. The deal, if it goes through, will what it considers are strategically consistent
see Talon add to its 45% interest in the Walyering commercial and technical attributes.
wet gas field in EP497, which it acquired from Talon managing director David Casey said:
operator Strike Energy last year. “The Muchea lead identified by Talon has the
Talon said the selection of Muchea followed potential to be matured into the region’s largest
a strategic review of possible Perth Basin oppor- undrilled Jurassic wet gas prospect. The struc-
tunities, with the focus of said review being on turing of the transaction provides Talon with
“appraising and exploring for conventional, the ability to undertake low-cost initial explora-
gassy reservoir projects, close to gas transport tion work to better understand the potential of
infrastructure and with potential to also contain Muchea while progressing to drill our maiden
value-adding liquid hydrocarbons”. Perth Basin well at Walyering.”™

P10 www. NEWSBASE .com Week 03 21•January•2021