Real Energy gets solid gas flow from its latest well, but not as good as expected
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Real Energy is patting itself on the back for achieving a solid flow rate at its latest well.
It’s not quite as good as the 3 mmcf/d forecast in September for both the Tamarama-2 and -3 wells, however.
The Tamarama-2 well, which is one of three in the Windorah gas project in the Cooper Basin, hit 2 mmcf/d (million cubic feet per day).
The flow rate was constrained by a fairly small choke size of 13/64 — the device at the wellhead which controls how much gas gets through and is selected to make sure fluctuations in the pressure underground don’t have an effect on the production rate.
“We could have got a higher flow rate but didn’t want to pull it too hard, the reservoir. Sometimes you can wreck the well if you pull it too hard,” managing director Scott Brown told Stockhead.
So far 2 mmcf/d has been the highest Real Energy (ASX:RLE) has been able to get from its three Windorah wells.
Initial flow rates for the third well are expected in February.
Mr Brown says the 3 mmcf/d figure was for the initial flow rate but some changes to well design and how they drill them could lift the current rate.\
Mr Brown believes the latest flow data brings the company closer to commercialisation.
“We are now on track to convert our large contingent resources of 2C & 3C into reserves and then start to deliver sustainable production from what is potentially a very large gas project,” he said.
The maiden resource is 672 billion cubic feet.
A reserve — the commercial quantity of gas versus a lose estimate — is expected before the end of April.
Once that’s in they have to build a 13km pipeline to Santos’ nearby processing plant but that’s infrastructure they’ve not yet costed, says Mr Brown.
Real Energy is one of a number of explorers seeking to turn Queensland gas resources into commercial fields and capitalise on East Coast gas pricing that’s at parity with international prices, thanks to the three LNG plants at Gladstone.
The stock ticked up 4.6 per cent to 9.2c.