Kalala S-1 is first of the three wells planned for drilling and evaluation this year. The company will soon deploy a rig at the Kalala S-1 with plans for spudding by the end of the month.
The well will be drilled to a depth of approximately 2,800m within the exploration permit 98.
Origin Resources operates Kalala S-1 with 35% stake while Sasol Petroleum Australia and Falcon hold 35% and 30%, respectively.
Falcon said that the drilling program will assess the hydrocarbon saturation and reservoir quality in the Middle Velkerri formation as well as determine the prospective areas by assessing the maturity of oil and gas.
The program will provide aerial distribution information of Middle Velkerri as well as gather data points for subsequent vertical / horizontal drilling, completion and production testing.
Earlier, Origin and Sasol signed an agreement to acquire 35% stake each in the Falcon’s exploration permits in the Beetaloo Basin.
As part of the deal, Origin and Sasol have agreed to fund A$64m for the first five of the nine well exploration and appraisal program planned from 2015 to 2018.
