Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Oil company Falcon Oil & Gas has unveiled results of the production log test at the Amungee NW-1H well. The results suggest a normalised gas flow rate equivalent of between 5.2-5.8 MMscf/d (million standard cubic feet per day) per 1,000 metres 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 CEO Philip O'Quigley commented: 'With our unique and extensive position in the Beetaloo Sub-basin, this is really exciting news for Falcon shareholders and this significant development provides line of sight to the commercialisation of the Beetaloo, for which we remain carried for further activity.
'A recent report by an industry analyst suggests that gas flows greater than 3MMscf/d from a 1,000 metre 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.'