Here are the oil, gas plays poised to add or start production
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With oil prices staying above US$70 per barrel and gas hitting record highs in the northern hemisphere, there has been significant attention paid to oil and gas stocks on the ASX.
Companies that have existing production, are adding more output, or on the verge of becoming producers are all drawing their share of interest.
Red Sky Energy (ASX:ROG) has been progressing operations at the Killanoola oil project in South Australia and is drawing ever closer to bringing it back into production.
The company has successfully completed slickline operations, which indicated that the Killanoola SE-1 well bore is clear and will now start wireline perforation works on the 16m of potential pay.
Should this be successful, it will increase production rates significantly.
Work is also ongoing on testing the newly identified potential pay zones totalling 37m at the Killanoola-1DW-1 well
Despite a slight hiccup, Byron Energy (ASX:BYE) has successfully run and cemented production casing at its South Marsh Island 69 E2 well offshore Louisiana.
The company had previously failed to recover stuck logging tools at the well but was nonetheless able to case the well with all producible hydrocarbons pay sands now behind pipe and secure.
Completion operations have begun with oil and gas production expected to begin in late October or early November.
It added that while abandoning the tools will add between US$2m to US$2.5m to the cost of drilling the well, it was a near term cost issue and has little adverse effect on the overall economics of the well.
Over in India, Oilex (ASX:OEX) is pushing to restart the production at the C-73 and C-77H wells after executing the sale and purchase agreement to purchase the Gujarat State Petroleum Company’s 55% participating interest in the Cambay Production Sharing Contract (PSC).
It is also planning to workover and re-complete C-77H to boost production in early 2022.
Development of well programs for two planned horizontal wells, C-78 and C-79, is at an advanced stage and the company has issued a request for quotation for well management services for their execution.
The company is also focussed on field development activities to exploit the 926 billion cubic feet contingent gas resource.