Drilling of first gas well in the Beetaloo Basin suffers a setback

THE drilling of the first gas well in the Beetaloo Basin has suffered a setback with the initial production hole to be plugged

Kyalla 117, 600km south-east of Darwin, between Daly Waters and Elliott, is the first of two new Origin Energy appraisal wells to be fracked in the Beetaloo Basin. Picture: Supplied

THE drilling of the first gas well in the Beetaloo Basin, Kyalla 117, has suffered a setback with Falcon Oil & Gas encountering stability problems in certain sections of the well’s original horizontal section.

The Dublin based company says the initial production hole section will now be plugged in line with regulatory requirements.

It says this will be followed by sidetracking and drilling a new horizontal production hole section.

The vertical section of Kyalla 117 was completed successfully last November, and, horizontal drilling started in early December.

Falcon Oil & Gas said after 700m – of a section intended to span at least 1000m – drilling challenges were encountered affecting the maintenance of clean hole conditions and stability in certain sections.

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The company said drilling will begin on a new horizontal hole within the next month, and that fracture stimulation will only occur after the drill is successfully completed and tests verity its integrity.

Falcon Oil & Gas Chief Executive Philip O’Quigley said while it was unfortunate to have encountered the operational difficulties, which would add to the time and cost to drill the horizontal section, the joint venture remained optimistic about the potential of the Kyalla.

A spokesman for the NT Government said all proper processes in line with the Pepper Inquiry recommendations had been followed by Falcon Oil & Gas.

However Protect Country Alliance says it is deeply concerned be the news.

Graeme Sawyer from the NT Protect Country Alliance described the event as “troubling” and more evidence that fracking was too risky for the Northern Territory.