Full steam ahead on onshore gas exploration

Origin appears to be ahead of schedule as it wants to catch up on its exploration program after a six month pandemic-induced stand down.

Kyalla-117 was drilled more than two kilometres deep late last year with a horizontal shaft 1.6km in length.

Origin's Kyalla 117 was the first well to be drilled since the moratorium was lifted to explore for shale gas in the Beetaloo.

The second well was drilled by junior explorer Empire Energy which has started drilling its Carpentaria-1 well about 85km south-west of Borroloola at an expected cost of $7-$8 million.

Origin's drilling program at Kyalla is believed to have cost almost $50 million.

Santos has already "successfully" frack tested its Tanumbrini-1 well" east of Daly Waters with plans to drill two more wells after this wet season.

That well was drilled in 2014.

"The success with a four-stage stimulation (fracking) program in the Middle Velkerri shales produced gas flow rates of 1.2 million cubic feet per day had "exceeded initial expectations", Santos said.

The Tanumbrini-1 well had been previously drilled vertically almost four kilometres deep.

Origin Energy says it now plans to production test the Kyalla-117 well and hopes to have results by the end of the year.

Energy explorers are greatly encouraged by the support promised by the Federal Government to fast track development of the Beetaloo resource.

Work was temporarily paused in the NT's onshore gas exploration in March this year in response to COVID-19 and to protect the health and safety of NT communities.

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