The two key operators in Australia's most talked-about onshore shale exploration play are progressing their plans to resume drilling, writes Russell Searancke.

Origin Energy and its joint venture partner Falcon Oil & Gas have just received regulatory approval for the Kyalla-117 N2 horizontal appraisal well in the Beetaloo sub-basin for their planned 2019 drilling, stimulation, and well testing programme.

The well is targeting the Kyalla shale liquids-rich gas fairway, and drilling is expected to get under way in September, said Falcon.

Origin has secured the Ensign-owned Rig 963 for the campaign, which will comprise two wells.

Origin chief executive Frank Calabria said in the company’s latest financial results that drilling results are expected in 2020. The company said it intends to invest more than A$100 million in this Beetaloo programme.

“We continue to make sure we spend our capital wisely. But it's an exciting prospect for us and clearly it's a key focus over the coming months,” said Calabria.

Origin and Falcon have previously booked a contingent resource of 6.6 trillion cubic feet of gas relating to the Velkerri B shale dry gas play seen in their Amungee-1 well.

A moratorium on petroleum activities in the Beetaloo area was lifted last year following the Northern Territory government’s inquiry into hydraulic fracturing.

Meanwhile, the second key operator, Santos, also plans to drill two wells - Tanumbirini-2 and Inacuma-1 – in the wider McArthur basin, which contains the Beetaloo, but has been forced to delay spudding the first well until early 2020 due to rig availability issues.

Santos will, however, flow test the Tanumbirini-1 discovery well.

Santos chief executive Kevin Gallagher said previously the McArthur basin "has the potential to do for the Northern Territory and Australia what the shale gas revolution has done for America, providing the competitive advantage to breathe life back into energy-intensive industries and generate wealth for the nation”.

Origin and Santos are not the only companies with permits in this huge frontier basin. Blue Energy, Armour Energy and Vintage Energy have acreage, while Japanese independent Inpex has access to one area.

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Partners prepare to turn the bit again at Beetaloo