Empire Energy’s extended production testing of its Carpentaria-2H well in the Northern Territory’s Beetaloo sub-basin continues to deliver strong gas flow with minimal decline. The ASX-listed oil and gas explorer and producer says the well is currently punching out a 13-day average of 2.6 million standard cubic feet, or “mmscf” of gas per day.
Management says the robust output was derived from 927m of effective stimulated horizontal length, suggesting a normalised flow rate of about 2.8 mmcf per day for every 1000m of the well’s horizontal section.
The well is currently flowing at about 2.5 mmscf per day.
The bumper results come after an initial “clean-up” at Carpentaria-2H – a period when flow obstructing debris is removed from the hole.
After the clean-up, the well was “shut in” – a process whereby production is restricted - for two days to change Carpentaria-2H’s wellheads and monitor its pressure build-up.
Wellheads are the surface-dwelling equipment used to regulate and monitor hydrocarbon production.
The company says during shut-in it observed Carpentaria-2H’s formation pressure rise swiftly to 1275 psi from 185 psi, indicating excellent reservoir connectivity.
According to the company, a peak gas rate of more than 11 mmcf per day was achieved after the two-day shut-in at the well with the rate then returning to a stabilised 2.5 mmscf per day over the past week.
Flow testing is continuing at Carpentaria-2H and the company aims to funnel data from the program into completion work for its nearby Carpentaria-3H and Carpentaria-4V wells.
The company says it could also have a handle on which of its reservoir intervals or “stimulation stages” are generating the greatest contribution to its flow rates over the next few weeks.
In earlier work at the well the company carried out a record 21 stages of hydraulic fracture stimulation or “fracking” at Carpentaria-2H – a record also for the Beetaloo sub-basin.
Empire launched fracking and gas flow test work at Carpentaria-2H about two weeks ago to assess the effectiveness of several fluid blends. The program was aimed at determining which mixture could deliver the best future production rates from the basin’s shale gas resources.
The fluids reviewed include HVFR, hybrid and slickwater composite-type blends.
The company adopted slickwater as its preferred solution for some of the work because of the material’s ability to deliver more economical gas recovery rates and its reduced chemical additives – a method that could turbocharge the economics of future gas production in the zone.
Carpentaria-2H is in the highly prospective Beetaloo sub-basin about 500km south-east of Darwin.
The sub-basin covers more than 28,000 square kilometres and is estimated to house a monster gas resource of about 500 trillion cubic feet. Remarkably, the figure is equivalent to more than 1000 times that of Australia’s current annual domestic consumption.
Government officials believe development in the Beetaloo could spawn about 6000 new jobs by 2040 and boost economic activity by up to $36.8 billion.
The impressive figures have led the Northern Territory and Federal Government to accelerate the basin’s commercialisation in recent times, ploughing about $170 million into infrastructure upgrades.
Empire seemingly has its hands full in the Beetaloo and the towering presence of two other ASX-listed gas players — Santos and Origin, speak volumes for the area’s greater prospectivity.
Much like Empire, Santos is also running well flow tests in the area and the company’s JV partner, ASX-listed Tamboran Resources recently announced one of its wells had registered a peak gas flow rate of 9.1 mmcf per day.
Empire Energy has almost $39 million in the bank and with production test work in the Beetaloo continuing, the company looks well placed to supply some of the ongoing demand for natural gas.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
