Feb 2022 Upstream article about the Beetaloo basin: Flow rates give Beetaloo shale gas the boost it needs
Two main operators - Santos and Origin - move closer to firming up commerciality
1 February 2022 4:19 GMT UPDATED 1 February 2022 4:19 GMT
By Russell Searancke
Australian operator Santos has taken a big step forward in proving up a commercial shale gas resource in the Beetaloo sub-basin with the successful flow testing of two wells at the Tanumbirini field.
The Tanumbirini-2H and Tanumbirini-3H wells drilled in Northern Territory permit EP 161 have delivered gas to surface from the Mid-Velkerri B shale over an initial 30-day period, said joint venture partner Tamboran Resources.
Tanumbirini-2H peaked at 4 million cubic feet per day of gas following a weather-related shut-in in mid-January 2022. The well then stabilised at a 14-day average of 1.7 MMcfd over a 660-metre unoptimised fracture stimulated horizontal section.
Testing times ahead in Australia's Beetaloo shale play
Read more
Tanumbirini-3H peaked at 10 MMcfd following shut-ins for the same weather-related event and planned maintenance; then stabilising at a 10-day average of 1.5 MMcfd over a 600-metre unoptimised fracture stimulated horizontal section.
Potential flow rates
Tamboran said its modelling indicates the Mid-Velkerri shale is capable of flowing gas in excess of 5 MMcfd per 1000-metre horizontal section.
Joel Riddle, chief executive of Tamboran, said: “We are encouraged by the initial flow rates, which support and validate Tamboran’s Mid-Velkerri shale model. The flow tests have proven that the hydrocarbon system is working as expected and, similar to the evolution of the best North American shales, the next steps are to optimise the results with larger and more effective fracture stimulation designs, with well design completion techniques expected to have a considerable impact on the ultimate recovery of these wells."
“The rocks are working as expected and the next steps are to optimise the results with larger and more effective fracture stimulation designs."
Riddle said the 5 MMcfd modelling predictions were of "material importance as we seek to accelerate the commercialisation and development of the Beetaloo sub-basin, with the first pilot production targeted for the end of calendar year 2025".
“The drilling of the T2H and T3H wells have de-risked the geology within the core Beetaloo. Coupled with results from the Velkerri 76 S2-1 well drilled by Origin in the neighbouring permit, EP 76, these results validate an active hydrocarbon system surrounding Tamboran’s 100% owned and operated EP 136 permit. We are planning to drill the M1H well between the Tanumbirini and Velkerri 76 S wells, in the heart of the core Beetaloo."
Santos has a 75% operator interest in Block EP 161 while Tamboran has 25%.
The Origin/Falcon JV
Origin is the second major operator in the Beetaloo with joint venture partner Falcon Oil & Gas.
In its December 32021 quarterly, Origin said the drilling of the Velkerri 76 S2-1 well was completed in the last quarter with encouraging preliminary results indicating that the Velkerri shales were within the wet gas maturity window.
"Core sample analysis is being undertaken to determine gas composition," said Origin.
JV partner Falcon said on 25 January 2022 the partnership had agreed on a planned stage three work programme for this year which will include the drilling, fracture stimulation and extended production test of two horizontal wells on the Amungee NW-1H well lease area.
Work will also include follow-up core and log analysis of the “very encouraging” preliminary evaluation of the 2021 Velkerri 76 well results; and further evaluation of the results of the Kyalla 117 N2-1H well drilled last year.
Australia's gas-fired recovery starts with Beetaloo sub-basin success
Read more
Falcon chief executive Philip O’Quigley said: “This is an extremely important period for the Beetaloo sub-Basin and we are delighted to have confirmed a high-impact, extensive and really exciting work programme for the joint venture.
"We will be focusing our attention on the Amungee Member B Shale, following the 2021 results at Amungee NW-1H, which suggested a normalised gas flow rate equivalent to around 5000 Mscf/d per 1000m of horizontal section; a potentially commercial flow rate.
"Positive results here will provide a further line of sight to the commercialisation of the Beetaloo and could lead to a pilot development program in 2023. Confirmation on the commencement on the Stage 3 work programme will be provided in the coming months as scheduling is refined."
