Exploration companies resume rich Beetaloo gas exploration program

THE NT’s Beetaloo Gas Basin, which is the Federal Government’s top priority as the first of five strategic basins, has resumed its rich gas exploration program

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ORIGIN Energy has resumed its Beetaloo Gas Basin exploration program.

Activity at the Kyalla well site near Daly Waters is back underway after work was temporarily paused in March this year in response to COVID-19.

The Kyalla well, successfully drilled in January, will now be fracture stimulated followed by a period of production testing over the coming months.

Initial results from this are expected by the end of the year, with full results in the first quarter of 2021.

Origin has resumed work at its Kyalla drill site in the Beetaloo Basin. Picture Supplied

Origin general manager for Beetaloo and Growth Assets, Tracey Boyes, said Origin’s strict COVID-19 health plans remain in place.

“Origin is pleased to be resuming exploration activity in line with the Northern Territory’s strict regulations to protect the environment and groundwater,” Ms Boyes said.

“We have a robust COVID management plan and additional controls in place so we can continue to safely carry out our work.

“Our Beetaloo project is already creating local jobs and opportunities and if successful, has the potential to deliver long-term economic benefits for the Northern Territory and Australia.”

Origin’s decision comes close on the heels of Empire Energy Group’s (EEG) recent announcement that it is mobilising a drill rig to its Carpentaria-1 well in the Northern Territory ahead of a planned drill program.

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Approximately 2900 metres will be drilled, logged and cored, representing a significant step forward in the company’s assessment of the region.

The company is undertaking water bore drilling, access track upgrades and drill pad preparations.

Drilling is expected to begin this month with a vertical fracture stimulation and extended production test planned for the end of the wet season.

Empire Energy managing director Alex Underwood said the company is now well funded to progress its planned work programs across its extensive holdings in the Beetaloo and McArthur Basins.

“Empire is playing a key role in unlocking the value of the Northern Territory’s emerging Beetaloo and McArthur basins through measured capital investment in our properties,” he said.

“We believe we can create substantial value for our shareholders, broad and sustainable economic benefits to the people of the Northern Territory, and energy security for Australia and the broader region.”

The NT’s Beetaloo Basin will be top priority as the first of five strategic basin plans the Morrison government earmarks for delivery to spearhead a gas-fired recovery for Australia.

Prime Minister Scott Morrison said a gas-fired economic recovery was a key part of his JobMaker scheme for the nation and he would announce plans for an Australian Gas Hub.

It will be delivered through a sequenced plan of 13 measures to establish an open and competitive hub-model, like the Henry Hub in the United States.

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Mr Morrison said unlocking supply was key to driving down gas prices and the NT’s Beetaloo Basin would be the first priority in line with a National Infrastructure Plan.

He said the plan would drive the establishment of a future gas market.