Origin has resumed activity at the Kyalla well site near Daly Waters in the Beetaloo Basin, as part of this year’s exploration work program.
In January, Origin 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 in the Beetaloo sub-basin. Kyalla is the first exploration well to successfully flow liquids rich gas from the shale formation of the same name.
Origin General Manager for Beetaloo and Growth Assets, Chris White said, “Analysis of the initial Kyalla results showed valuable liquids rich gas is present.
“The composition of the gas – 65 per cent methane, 19 per cent ethane, 11 per cent propane and butane, and 3 per cent condensates, combined with low CO2 levels of less than a per cent – is very promising and indicates the gas is likely to be useful for several different purposes.
“Our focus now is to flow the well and commence extended production testing to understand the deliverability of the well,” Mr White said.
Production testing occurs after a well is successfully drilled and fracture stimulated, and sufficient volumes of fluids pumped down during these stages is returned to surface to allow the well to flow on its own.
A further update will be provided when production testing has been completed and detailed evaluation has been undertaken.
“We’re preparing to drill a new vertical well, also targeting liquids rich gas, into a second shale formation called the Velkerri later this year. We also plan to complete a further production test at the Amungee NW 1H well,” Mr White added.