Falcon Oil & Gas said that its Kalala S-1 well in the Beetaloo Basin of the Northern Territory, Australia, found over 500 meters shale gas with net pay of more than 150 meters.
Falcon is developing the field with Origin Energy and Sasol, which have agreed to fund exploration in return for a 35% stake each in Falcon’s exploration permits in the Beetaloo Basin, with the company holding the remaining stake.
Origin and Sasol will pay for the full cost of completing the first five wells estimated at A$64 million ($46 million), and will fund any cost overruns, with work expected to be completed between 2015 and 2016.
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Image: Falcon Oil