Falcon Oil & Gas and its partner have commenced drilling at the Velkerri 76 S2-1 well in the Beetaloo Sub-Basin, Northern Territory, Australia.

Drilling at the Velkerri 76 vertical well will assess the prospectivity of liquids rich gas in the Velkerri play along the south-eastern flank of the Beetaloo Sub-Basin.

The drilling work’s principal objectives include acquiring core and log and undertaking diagnostic fracture injection test data across the Velkerri play.

It also aims to penetrate the Velkerri formation to assess hydrocarbon maturity, saturation and reservoir quality, as well as provide additional information on the areal distribution related to the Velkerri formation.

The partners will also collect data that would support future potential horizontal drilling, completion, stimulation, and production testing.

Falcon CEO Philip O’Quigley said: “The spudding of Velkerri 76 marks yet another exciting milestone for the joint venture and we look forward to updating the market as soon as results become available.”

Origin Energy B2, a wholly owned subsidiary of Origin Energy, operates the Beetaloo Exploration Project with a 77.5% stake. The remaining stake is held by Falcon Oil & Gas.

The partners also started an extended production test at the Amungee NW-1H well (EP 98) in the Beetaloo Sub-Basin.

Through the test, the firm intends to determine if all the original frack stages contributed to the 2016 initial extended production test.

Work at the Velkerri 76 S2-1 well and the Amungee NW-1H well form part of the company’s 2021 work programme, which also involved clean-up of Kyalla 117 well to prepare for extended production testing.