Falcon to pursue large resource at Beetaloo

Falcon Oil & Gas Ltd., Denver, plans to reenter, deepen, and test the Shenandoah-1 exploration well in the Beetaloo subbasin of Australia’s McArthur basin, where a resource evaluation has indicated large oil and gas potential.

By OGJ editors
HOUSTON, Aug. 19
-- Falcon Oil & Gas Ltd., Denver, plans to reenter, deepen, and test the Shenandoah-1 exploration well in the Beetaloo subbasin of Australia’s McArthur basin, where a resource evaluation has indicated large oil and gas potential.

Twelve wells have been drilled in the lightly explored basin, in which Falcon has 75% interest in and operates four Northern Territory exploration permits that cover 7 million acres.

Consulting engineers released best estimates of 193 billion stb of unrisked, undiscovered oil in place and 385 tscf of unrisked, undiscovered gas in place attributable to Falcon’s interest. The prospective resource figures are 19 billion bbl and 64 tcf.

The oil is estimated to be present in the conventional Hayfield mudstone and Jamison sandstone and in the unconventional Upper Kyalla shale. The gas is estimated to be in the conventional Hayfield, Jamison, and Moroak sandstone, in basin centered gas accumulations in the Moroak and Bessie Creek sandstones, and in the Lower Kyalla and Middle Velkerri shales. All formations are part of the Proterozoic Roper Group (see chart, OGJ, June 27, 1994, p. 61).

The bulk of the oil believed recoverable is in the Upper Kyalla shale, and the largest share of the potentially recoverable gas is in the Bessie Creek sandstone. The formations are at depths of 3,000 m or less.

Sweetpea Petroleum Pty. Ltd., a subsidiary of PetroHunter Energy Corp., Denver, drilled Shenandoah-1 to a total depth of 4,740 ft in 2007 in the southern part of Exploration Permit 98.

Shenandoah, a twin to the Pacific Oil & Gas Pty. Ltd. Balmain-1 well, is about 375 miles north of nearest onshore production in Mereenie and Palm Valley fields near Alice Springs. PetroHunter owns the other 25% interest in the four Beetaloo permits.

Falcon, which plans to seek a partner, will deepen to an undisclosed depth.

More in Exploration & Development