Falcon Starts Drilling for Shale in Australia's Beetaloo Basin

Falcon Oil & Gas Ltd. has commenced shale drilling operations on its initial three well fully funded drilling campaign in the Beetaloo Basin, in the Northern Territory of Australia.

Kalala S-1 is the first of Falcon’s fully carried, 2015 three well drilling and evaluation programme in the Beetaloo Basin, Northern Territory, Australia, operated by Origin. It is anticipated that the mobilisation of the rig to Kalala S-1 well site will happen shortly with the spudding of this first exploration well on target for the end of June, the company said last week.

Falcon expects Kalala S-1 will be drilled to a total depth of approximately 2,800 meters and that drilling will take approximately 35 to 50 days. Kalala S-1 is located within exploration permit 98.

Falcon is fully carried for all 2015 drilling and evaluation costs, retaining its 30% interest in the Beetaloo Basin with co-venture partners Origin and Sasol.

In May 2014, Falcon announced it had entered into a farm-out agreement and joint operating agreement with Origin and Sasol with each farming into 35 percent of the Falcon’s exploration permits in the Beetaloo Basin through its subsidiary, Falcon Oil & Gas Australia Ltd. 

The Beetaloo Basin is a Proterozoic and Cambrian age tight oil and gas basin that Falcon believes is well suited for unconventional oil and gas projects. Since acquiring the licences in 2008, Falcon Australia has conducted extensive study of 11 wells that were drilled by an oil and gas subsidiary of Rio Tinto between 1988 and 1992. Oil and gas bleeds from 6,700 meters of core and other well data confirm all necessary elements of productive shale oil and shale gas play exist in multiple independent petroleum systems.