Exploration in the Northern Territory’s Beetaloo Basin has progressed, with the fourth of five Stage 1 wells spudded.
This follows the completion of extended production testing at the Amungee NW-1H exploration well of the “B Shale” member of the Velkerri Formation in the onshore Beetaloo Basin. Origin has also undertaken a resource study based on Amungee NW-1H well results and other key wells in the Beetaloo Basin including regional seismic data.
Key report and study points:
- Drilling and seismic results across more than 10,000km2 illustrate the continuity of the Velkerri Formation shale gas play over a large area
- The “B Shale” member of the Velkerri Formation is interpreted to be the most continuous of the three individual targets within the Velkerri Formation shale gas play
- Production test data from Amungee NW-1H, an approximately 1,100m in-zone horizontal well with 11 fracture stimulation stages across approximately 600m of the lateral section, confirms the ability of the Velkerri Formation “B Shale” to flow gas following hydraulic fracture stimulation
- Origin has prepared a Contingent Resource estimate (Table 1) using probabilistic methods and reservoir evaluation data, in addition to regional seismic data.
Table 1. Assessment of 2C Contingent Gas Resource Estimates for the Velkerri B Shale Pool within EP76, EP98, and EP117 as of 14 February 20171
|Measured and Estimated Parameters||Units||Best Estimate|
|Original Gas In Place (OGIP)3 (Gross)||TCF6||61.0|
|Contingent Resource4 (Gross)||TCF||6.6|
|Contingent Resource4 (Net)5||TCF||2.3|
1 Contingent Resource Estimates have been prepared on a statistical aggregation basis and in accordance with the Society of Petroleum Engineers Petroleum Resources Management System (SPE-PRMS). Contingent Resource Estimates are those quantities of gas (produced gas minus carbon dioxide and inert gasses) that are potentially recoverable from known accumulations but which are not yet considered commercially recoverable due to the need for additional delineation drilling, further validation of deliverability and original gas in place, and confirmation of prices and development costs.
2 P50 area from the Contingent Resource area distribution
3 OGIP presented is the product of the P50 Area by the P50 OGIP per km2
4 Estimated Gas Contingent Resource category of 2C
5 Net to Origin’s 35% interest in EP76, EP98, and EP117
6 TCF: trillion cubic feet
Origin CEO Integrated Gas, David Baldwin, said “Origin is pleased to confirm it has submitted a report to the Northern Territory Government that indicates the existence of a material gas resource within the Beetaloo Basin.
“The Beetaloo Basin is the Territory’s most prospective onshore basin for unconventional gas and our test results further confirm the region’s outstanding shale gas potential. Further exploration and appraisal activity will be required to progress our understanding of the play and mature the contingent resources to reserves,” Mr Baldwin said.
On 14 September 2016, the Northern Territory Government implemented a moratorium on hydraulic fracturing of unconventional gas reservoirs. The moratorium will remain in place until the Government has considered the outcomes of a comprehensive independent scientific inquiry into the social and environmental impacts of hydraulic fracture stimulation.
* BEETALOO JOINT VENTURE
Origin Energy Limited (Operator) **: 35%
Sasol Petroleum Australia Limited: 35%
Falcon Oil and Gas Limited: 30%
** Via a wholly owned subsidiary
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