Resolving drilling issues in the Beetaloo – drilling longer for lower cost
J. Bunning A * , K. Wuttke A , J. Grehan A and A. Bruce BA
B
Jordan Bunning is a Principal Engineer and founding member of inGauge Energy, with over 17 years of experience in complex well execution and project management across conventional oil and gas; high-pressure, high-temperature (HPHT); coal seam gas (CSG); and deep-water bores. He has held key roles such as Drilling Manager, Drilling Team Leader, Senior Drilling Engineer, and Drilling and Completions Engineer, with expertise in rig operations, well design, and complex project planning and execution. Jordan has led several of inGauge Energy’s most successful projects, including serving as in situ Drilling Manager for Westside Corporation, Comet Ridge, and Empire Energy’s Northern Territory Carpentaria-1 well. He has worked onshore and offshore in Australia, the United Kingdom, Africa, Papua New Guinea, and the Middle East. Jordan holds a Bachelor of Engineering in Petroleum Engineering (Hons) from the University of New South Wales (2003) and has prior experience with Oilsearch Limited, Santos Ltd, Origin Energy, and Roc Oil Limited. |
Kelvin Wuttke is a Founder and Director at inGauge Energy, and a Drilling and Completions Engineer with over 30 years of experience in the oil and gas industry, encompassing onshore, offshore, and conventional and CSG operations. With a wealth of leadership roles with Egis, Chevron, Santos, and inGauge, his expertise spans drilling and completions design, well integrity, stimulation, workovers, artificial lift, and pipeline operations. Kelvin has successfully managed complex projects, including international offshore operations, conventional onshore projects in the Cooper Basin, and unconventional CSG and shale developments in Queensland and the Northern Territory, including combined drilling, completion, stimulation activities, fracture stimulation, remediation workovers, underbalanced drilling, and abandonments. His ability to integrate technical knowledge with project execution ensures cost-effective and efficient delivery and affirms his status as a trusted advisor to our clients. As a Chartered Professional Engineer, Kelvin holds a Bachelor of Engineering (Mechanical) and a Master of Business Administration. |
John Grehan is a multi-skilled drilling professional with a first class Honours degree in Mechanical Engineering and approximately 20 years of diverse international drilling experience both onshore and offshore in a variety of technically challenging and remote locations in countries across the Persian Gulf, North Africa, North Sea, South China Sea, Papua New Guinea, and Australia. He is equally comfortable working as either an office-based Drilling Engineer or rig-based Engineer/Drilling supervisor, with approximately 60% of his career time spent in field-based positions, including several years as a Senior Drilling Supervisor. John is experienced in a range of drilling techniques, including HPHT, horizontal and extended reach drilling, casing drilling, managed pressure, mud cap, underbalanced and air drilling, use of synthetic-based mud drilling fluids, wireline, slickline, completions, and well testing operations. |
Dr Alex Bruce was appointed Chief Geoscientist of Empire Energy Group Limited in March 2020 to work the company’s Beetaloo Sub-basin unconventional shale assets in the Northern Territory. Dr Bruce has over 20 years of upstream oil and gas experience working for operating companies. Prior to joining Empire, he was most recently with the Cooper Basin-focused player Bridgeport Energy and has served in similar roles with other mid-cap Australian Stock Exchange oil and gas companies, including AWE (now Mitsui), Drillsearch Energy (acquired by Beach Energy), and ROC Oil. Dr Bruce is the immediate past President of the NSW Branch of the Petroleum Exploration Society of Australia, is a member of Society of Petroleum Engineers and the American Association of Petroleum Geologists, and earned his PhD from the University of New South Wales in reservoir characterisation using machine learning. |
Abstract
The Beetaloo Sub-basin in central Northern Territory, Australia, is a promising region, estimated to contain upwards of 500 trillion cubic feet of gas resources (Northern Territory Government 2023). Empire Energy Group Limited, a key operator in the Beetaloo, has been advancing its assets towards production, focusing on cost reduction and operational efficiency. This paper discusses the significant reduction in drilling costs achieved through lessons learned and innovative solutions implemented over the past 5 years. inGauge Energy, Australia’s largest onshore drilling and completions consultancy, has been pivotal in supporting Empire Energy’s operations. The cost of drilling Carpentaria wells has decreased from AUD5600 per metre to AUD2200 per metre, attributed to longer wellbores and optimised operational strategies. Key challenges addressed include logistics in remote areas, regulatory complexities, and technical difficulties, such as drilling through the Moroak Sandstone and managing shallow aquifers. This paper highlights the importance of meticulous logistical planning, strong industry relationships, and the adoption of advanced drilling technologies. Techniques, such as floating casing and other drilling technologies, have enabled longer lateral wells to be executed, which is crucial for cost reduction. Despite progress to date, ongoing challenges remain, including regulatory hurdles and the need for further technical optimisation. Future cost reductions rely on continuous learning, bulk efficiency, and long-term drilling and services contracts. By optimising well designs, improving the rate of penetration, and leveraging economies of scale, the industry can ensure the viability and profitability of the Beetaloo Sub-basin, contributing significantly to Australia’s energy future.
Keywords: Beetaloo, cost, drilling, exploration, gas, Northern Territory, oil, petroleum, production.
Jordan Bunning is a Principal Engineer and founding member of inGauge Energy, with over 17 years of experience in complex well execution and project management across conventional oil and gas; high-pressure, high-temperature (HPHT); coal seam gas (CSG); and deep-water bores. He has held key roles such as Drilling Manager, Drilling Team Leader, Senior Drilling Engineer, and Drilling and Completions Engineer, with expertise in rig operations, well design, and complex project planning and execution. Jordan has led several of inGauge Energy’s most successful projects, including serving as in situ Drilling Manager for Westside Corporation, Comet Ridge, and Empire Energy’s Northern Territory Carpentaria-1 well. He has worked onshore and offshore in Australia, the United Kingdom, Africa, Papua New Guinea, and the Middle East. Jordan holds a Bachelor of Engineering in Petroleum Engineering (Hons) from the University of New South Wales (2003) and has prior experience with Oilsearch Limited, Santos Ltd, Origin Energy, and Roc Oil Limited. |
Kelvin Wuttke is a Founder and Director at inGauge Energy, and a Drilling and Completions Engineer with over 30 years of experience in the oil and gas industry, encompassing onshore, offshore, and conventional and CSG operations. With a wealth of leadership roles with Egis, Chevron, Santos, and inGauge, his expertise spans drilling and completions design, well integrity, stimulation, workovers, artificial lift, and pipeline operations. Kelvin has successfully managed complex projects, including international offshore operations, conventional onshore projects in the Cooper Basin, and unconventional CSG and shale developments in Queensland and the Northern Territory, including combined drilling, completion, stimulation activities, fracture stimulation, remediation workovers, underbalanced drilling, and abandonments. His ability to integrate technical knowledge with project execution ensures cost-effective and efficient delivery and affirms his status as a trusted advisor to our clients. As a Chartered Professional Engineer, Kelvin holds a Bachelor of Engineering (Mechanical) and a Master of Business Administration. |
John Grehan is a multi-skilled drilling professional with a first class Honours degree in Mechanical Engineering and approximately 20 years of diverse international drilling experience both onshore and offshore in a variety of technically challenging and remote locations in countries across the Persian Gulf, North Africa, North Sea, South China Sea, Papua New Guinea, and Australia. He is equally comfortable working as either an office-based Drilling Engineer or rig-based Engineer/Drilling supervisor, with approximately 60% of his career time spent in field-based positions, including several years as a Senior Drilling Supervisor. John is experienced in a range of drilling techniques, including HPHT, horizontal and extended reach drilling, casing drilling, managed pressure, mud cap, underbalanced and air drilling, use of synthetic-based mud drilling fluids, wireline, slickline, completions, and well testing operations. |
Dr Alex Bruce was appointed Chief Geoscientist of Empire Energy Group Limited in March 2020 to work the company’s Beetaloo Sub-basin unconventional shale assets in the Northern Territory. Dr Bruce has over 20 years of upstream oil and gas experience working for operating companies. Prior to joining Empire, he was most recently with the Cooper Basin-focused player Bridgeport Energy and has served in similar roles with other mid-cap Australian Stock Exchange oil and gas companies, including AWE (now Mitsui), Drillsearch Energy (acquired by Beach Energy), and ROC Oil. Dr Bruce is the immediate past President of the NSW Branch of the Petroleum Exploration Society of Australia, is a member of Society of Petroleum Engineers and the American Association of Petroleum Geologists, and earned his PhD from the University of New South Wales in reservoir characterisation using machine learning. |
References
Empire Energy (2024b) Empire Energy Operations. Available at https://empireenergygroup.net/australia/ [accessed 18 December 2024]
Northern Territory Government (2023) Beetaloo Sub-basin. Available at https://territorygas.nt.gov.au/projects/beetaloo-sub-basin
