29th May 2015 10:21
LONDON (Alliance News) - Falcon Oil and Gas Ltd Friday said the three well drilling programme on the Beetaloo basin in Northern Australia has begun.
The first well to be drilled is the Kalala S-1, in which Falcon has a 30% interest. Falcon is fully carried for all drilling and evaluation costs on the basin in 2015 and the other partners are Origin Resources Ltd, the operator with a 35% stake, and Sasol Petroleum Australia Ltd which holds a further 35% stake.
Civil works on Kalala S-1 havbe started and the well is expected to be drilled before the end of June. The well is located within exploration permit 98, with access from the existing Carpentaria Highway and will be drilled to a total depth of approximately 2,800 meters. That will take between 30 to 35 days to drill.
The well is targeting the Middle Velkerri formation to assess hydrocarbon saturation and reservoir quality.
"It is anticipated that the mobilisation of the rig to Kalala S-1 well site will happen shortly with the spudding of this first exploration well on target for the end of June," said the company.
Falcon shares were up 1.8% to 9.80 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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