Falcon Oil & Gas announced on Tuesday that it intends to resume exploration at the Beetaloo sub-basin as soon as is practical after the Northern Territory government lifted a moratorium on hydraulic fracturing in the area.
Well testing at the Australian Beetaloo sub-basin just prior to the moratorium had indicated a “very promising” material gas resource estimated to have original gas in place at 61 TCF and 6.6 TCF gross contingent resource, over an area covering 1,968km2.
Falcon Oil & Gas's 98% owned subsidiary Falcon Oil & Gas Australia Limited holds a 30% interest in 4.6m gross acres in exploration permits 98, 76 and 117 covering the majority of the Beetaloo Basin.
Phillip O'Quigley, chief executive of Falcon Oil & Gas, said: “We are very pleased with the fact-based decision made by the NT government to lift the moratorium on hydraulic fracturing. We look forward to the recommencement as soon as practical of our multi-well work programme in the Beetaloo basin with our joint venture partner, Origin Energy Limited.”
Origin intends to drill and fracture stimulate a further five wells to complete the exploration permit commitments.
As of 1613 BST, Falcon Oil & Gas's shares were down 0.02% at 23.50p.