Oz Origin Raises Stake in Beetaloo JV

Origin Energy April 7 said it had increased its interest in the Beetaloo Basin joint venture by 7.5% to 77.5%.

The company has agreed with joint venture partner Falcon Oil and Gas to raise its interest in exchange for increasing its carry of Falcon’s share of costs from the second stage onwards from A$34mn to $59mn, Origin said.

In addition, the two companies have agreed changes to the joint operating agreement, including amendments that establish Origin as the operator with control over the timing, direction and budgets for future project activity, as well as flexibility in any future farm-down scenario, within the permit areas.

Late last month, Origin and Falcon temporarily paused activities at the project and rescheduled further work to the second half of the year owing to circumstances brought about by the Covid-19 pandemic. In September last year, Origin secured the go-ahead from authorities to drill the first of two horizontal appraisal wells targeting shale gas plays in the onshore Beetaloo sub-basin. It spudded the first well, Kyalla 117 N2-1, in October.

Origin now expects a delay of at least three months for the Kyalla 117 well, with stimulation and extended production test to occur in the first half of the 2021 financial year. The drilling of the Velkerri Flank well is expected in second half, it said.