Origin Energy Ltd. submitted a notification and initial report of its liquids-rich gas discovery in the Kyalla-117 N2-1H ST2 well in the onshore Beetaloo subbasin of the Northern Territory, Australia.
The initial report is based on early well flow data and follows recent work to introduce nitrogen to lift the fluids in the well enabling it to flow unassisted.
Flow rates from the Kyalla formation reservoir were 400,000-600,000 cu ft/day of gas over a 17-hour period. Initial observations indicate a liquid-rich gas composition with carbon dioxide estimated to contain less than one percent of the flow. Condensate shows were also present.
The flow back of hydraulic fracture stimulation water to surface averaged a rate of 400-600 b/d during the test period.
The company will now put in place longer term measures to flow back sufficient hydraulic frac water to enable extended production testing to take place during the coming dry season.
This will be followed by a more detailed update and well evaluation during this year’s second quarter.
Kyalla 117, near Daly Waters, was drilled to 3,809 m TD with a 1,579 m lateral section. It is the first well to be successfully drilled into the Kyalla reservoir.
Origin is operator of the well with 77.5% interest. Falcon Oil and Gas Ltd. holds the remaining 22.5%.
The test result follows an announcement from the Australian government that it would invest $217 million (Aus.) in infrastructure improvements, including upgrades to remote roads in the Northern Territory. The move is expected to support gas development and other industries in and around the Beetaloo subbasin. The new funding is in addition to the $50 million (Aus.) announced in December 2020 that is being provided by the government to accelerate exploration activity in the region.