Oil and Gas News

Normalised gas flow rate confirmed at Amungee

Falcon Oil & Gas has confirmed the results from the production log test at the Amungee NW-1H well in the Northern Territory suggest a normalised gas flow rate.

The gas flow rate is equivalent of between 5.2-5.8 MMscf a day per 1000m of horizontal section.

Amungee is located in the Beetaloo Sub-Basin, Northern Territory, Australia and the testing conducted is part of the 2021 work programme which is operated by Falcon’s joint venture partner, Origin Energy.

Falcon chief executive officer Philip O’Quigley said with the company’s unique and extensive position in the Beetaloo Basin, it is exciting news for shareholders and provides line of sight to the commercialisation the Beetaloo.

“A recent report by an industry analyst suggests that gas flows greater than 3MMscf/d from a 1,000m horizontal well are required to demonstrate the commerciality of the Beetaloo. Not only does this test result significantly exceed these parameters and significantly increase our assessment of the Velkerri dry gas play, but it also puts the Beetaloo on a par with other shale gas basins in North America,” he said.

“While we wait for further news from our operations at Kyalla 117 N2-1H ST2 and Velkerri 76 S2-1, we look forward to working with our JV partner, Origin, in establishing the next phase of work on the Middle Velkerri B Shale.”

O’Quigley added the with other drilling in neighbouring Santos-operated blocks targeting the Velkerri dry gas play, this is an important moment for the nationally significant Beetaloo Sub-basin.

Further outlined in the Amungee testing, initial flow rates during the first 48 hours of testing ranged between 2 – 4 MMscf/d with rates averaging 1.23 MMscf/d over the first 23 days.

A PLT was run on August 19, 2021 to 3,098mMD, just prior to the casing deformation at 3,112mMD.

Falcon advised that the PLT data confirmed that: only 5-15 per cent of the production came from stages 1-7 beyond the casing deformation point at 3,112 mMD; and 85-95 per cent of the production came from stages 8-11 spanning a 200m horizontal section, prior to the casing deformation.

As a result, the company reported that a typical future production well would be likely to have a horizontal production section up to 3 kilometres.

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