Oz Shale Partners Hire Rig

Australian operator Origin has signed a rig contract with Ensign for its A$65mn ($46.5mn) stage 2 Beetaloo drilling campaign, minority partner Falcon said January 21. The contract has an option for next year and any costs above the A$65mn will be split 70;30.

Once the regulatory approvals for hydraulic fracturing are in place, the joint venture will evaluate the potential of the liquids-rich gas fairways in both the Kyalla and Velkerri plays, with two horizontal wells. Together with the Velkerri B dry gas play discovered in 2016, this allows for the assessment of three plays, enabling the most commercially prospective play to be targeted for Stage 3 drilling during 2020, said Falcon CEO Philip O'Quigley.

Work has already started at some well sites, including water bore drilling and water monitoring, with drilling targeted to start in June 2019.

O'Quigley said Origin's announcement "is an exciting development for Falcon shareholders as the JV prepares to commence drilling in the highly prospective Beetaloo Sub-basin. We look forward to updating the market as work progresses over the coming months.”

The Northern Territory imposed a moratorium on hydrocarbons production using hydraulic fracturing while it carried out an inquiry into the risks it posed, if any, to the environment. It lifted the moratorium in April 2017 but required a number of measures be put in place before it approves fracking applications-.