LONDON (ShareCast) - (Sharecast News) - Falcon Oil & Gas updated the market on the Beetaloo project in Australia's Northern Territory on Thursday, confirming that fraction stimulation of the Kyalla 117 well was expected to begin later in the year following local Covid-19 restrictions.
The AIM-traded firm said the Kyalla 117 'N2-1H ST2' well was drilled to a total measured depth of 3,809 metres in February, which included a 1,579 metre lateral section in the Lower Kyalla Formation.

Results obtained demonstrated "good" reservoir continuity, conductive natural fractures and continuous gas shows, it reported.

In March, operations in the Beetaloo Basin were paused in response to the Covid-19 pandemic.

Falcon said the Ensign rig was secured and maintained locally, and by mid-May all personnel had left the Kyalla 117 well site.

On Thursday, it said that subject to Covid-19 related conditions, fracture stimulation of Kyalla 117 was expected to begin in the third and fourth quarter of 2020, with extended production testing of the well to follow.

Initial results from the production test were expected during the fourth quarter, with final results expected by the end of the first quarter of 2021.

Those results would inform the decision to either further evaluate the liquids-rich gas play, or begin activities in the Velkerri liquids-rich gas play.

Construction of the Velkerri 76 well lease pad was completed in early December, the board said, and environmental approval to drill and fracture stimulate the Velkerri Flank well was granted in late December.

"We look forward to the next phase of operations with the fracture stimulation of the Kyalla 117 well and will update the market as results become available," said chief executive officer Philip O'Quigley.

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