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Beetaloo’s Record-Length Well Faces Regulatory Hurdles Before Gas Sales Begin

Energy By Maxwell Dee 3 min read

Beetaloo Energy has begun hydraulic stimulation on its record-length Carpentaria-5H well in the Beetaloo Basin, aiming to unlock enhanced gas production with advanced techniques. Results from the upcoming production test will be pivotal for the company’s pilot project and future development plans.

  • Hydraulic stimulation commenced on Carpentaria-5H, the longest horizontal well in Beetaloo Basin
  • Over 60 stimulation stages planned across a 3,310-metre horizontal section in Velkerri B Shale
  • Advanced stimulation design with increased pump rates and proppant intensity by Halliburton
  • 30-day production test (IP30) results expected in late Q3 2025
  • Carpentaria-5H part of Carpentaria Pilot Project targeting long-term gas production and sales

A Milestone in Beetaloo Basin Development

Beetaloo Energy Australia Limited has officially commenced hydraulic stimulation operations on its Carpentaria-5H well, marking a significant step in the development of the Beetaloo Basin’s unconventional gas resources. This well, the longest horizontal well drilled in the basin to date, extends over 3,310 metres within the Velkerri B Shale formation, setting a new benchmark for scale and technical ambition in the region.

Managed by industry heavyweight Halliburton, the stimulation campaign involves over 60 stages designed to maximize gas extraction efficiency. The operation leverages a 42,000 hydraulic horsepower spread, enabling enhanced pump rates of approximately 100 barrels per minute and elevated proppant intensities, which are critical for maintaining fracture conductivity and improving gas flow.

Technical Innovations and Strategic Design

Carpentaria-5H’s design incorporates lessons learned from previous wells in the Carpentaria Pilot Project, including Carpentaria-2H and Carpentaria-3H, both drilled and stimulated from the same well pad to reduce environmental impact and improve cost efficiency. Notably, the well features a larger 5 ½ inch casing diameter compared to earlier wells, allowing for greater pump rates and more flexible stimulation techniques.

The stimulation approach focuses on slickwater fluid with high intensity and a revised perforation strategy, aiming to optimize both initial production rates and ultimate gas recovery. This reflects Beetaloo Energy’s commitment to applying North American best practices adapted to local geological conditions, signaling a maturation of technical expertise in Australia’s shale gas sector.

Looking Ahead, Testing and Commercial Prospects

Following the completion of hydraulic stimulation, the well will undergo a cleanup and soak period of approximately 30 days before entering a 30-day production test phase, known as the IP30 test. The results, expected in late Q3 2025, will provide critical data on the well’s flow rates and productivity, informing the viability of scaling up operations.

The Carpentaria-5H well is integral to the broader Carpentaria Pilot Project, which aims to establish a reliable production profile to support future development and gas sales. However, commercialisation depends on securing regulatory approvals for beneficial use of test gas and traditional landowner consents. Beetaloo Energy’s current cash position of $40.5 million provides a solid financial foundation as it advances these milestones.

Strategic Implications for Regional Energy Supply

Managing Director Alex Underwood highlighted the potential for the Beetaloo Basin to contribute significantly to the Northern Territory’s gas supply and eventually to the broader Australian east coast market. By increasing gas availability, the project could enhance energy reliability, exert downward pressure on prices, and stimulate economic growth in the region.

As the company progresses through this critical phase, the industry and investors will be watching closely for the IP30 results and regulatory developments that will shape the future of unconventional gas production in Australia.

Bottom Line?

The upcoming IP30 production results will be a defining moment for Beetaloo Energy’s ambitions in the Beetaloo Basin and the future of Australia’s shale gas sector.

Questions in the middle?

  • Will the IP30 test confirm commercial-scale gas flow rates from Carpentaria-5H?
  • How quickly can Beetaloo Energy secure regulatory approvals for gas sales from the pilot project?
  • What impact will the Carpentaria Pilot Project have on regional energy prices and supply reliability?