Origin Energy Ltd., Sydney, has increased its interest in the Beetaloo basin joint venture in the Northern Territory by 7.5%.
The company agreed to take up the extra interest from Falcon Oil and Gas in exchange for increasing its carry of FOG’s share of costs by $25 million (Aus.) over the coming years.
This deal increases Origin’s overall interest to 77.5% and the carry of FOG’s share of costs from Stage 2 of the Beetaloo program will increase to $59 million from $34 million. FOG retains a 22.5% interest.
The companies also have agreed to changes in the joint operating agreement, including amendments that provide Origin as operator with control over timing, direction, and budgets for future project activity. This change increases flexibility in any future farm-down scenarios within the permit areas.
Results to date on the Kyalla 117 well have demonstrated good reservoir continuity, conductive natural fractures, and continuous gas shows (OGJ Online, Dec. 10, 2019).
Nevertheless, Origin has temporarily paused operations due to the COVID-19 environment. There will be a delay of at least 3 months for the Kyalla well. A stimulation and extended production test is now expected in the first half of financial year 2021 while drilling of the Velkerri Flank well is expected in the second half of financial year 2021.