Energy: Otto on track for Texan gas production growth
Link copied to
Otto Energy (ASX:OEL) could soon have substantial additional production at the Lightning gas and condensate field in Texas once operator Hilcorp Energy completes the Green #2ST well for production.
Green #2ST intersected 146 feet of pay over seven different sand intervals. There is potential to add up to 175 feet of additional pay depending upon porosity and water saturation cutoffs.
The company said data indicated the target intervals had similar characteristics and were potentially greater in thickness to the same intervals in the Green #1 well, which had been brought back into production.
Green #1, which was shut in during the final part of drilling Green #ST2, was producing 11.9 million standard cubic feet (MMscf) of gas and 360 barrels (bbl) of condensate (light oil) as at September 30, 2019.
Otto said subject to successful production testing and evaluation of reservoirs encountered in Green #2ST, the joint venture would consider the potential for additional wells to further develop the Lightning field, which could support up to five wells.
Meanwhile, Armour Energy (ASX:AJQ) has nearly doubled production from its Myall Creek #5A well in Queensland’s Bowen-Surat Basin.
The well is now producing 4.23MMscf of gas per day with associated condensate production after the company recommenced flowback operations. This is well up from the production of 2.37MMscf that was achieved before it was shut in over the Christmas period.
By comparison, the company reported sales of about 6.8MMscf of gas and 115bbl of condensate per day during the September 2019 quarter.
Kalina Power (ASX:KPO) has received a positive review indicating that cost estimates and performance expectations for its proposed combined cycle waste heat to power plants in Alberta can be substantiated. This is expected to assist with the financing of up to $C300m ($332.8m) for its initial five projects.