Oil and gas explorer Real Energy (ASX: RLE) has announced the free flow of gas and frack fluids from two wells undergoing flow testing at its flagship Windorah gas project in Queensland.
The Cooper Basin-focused company today reported its Tamarama-2 well continuing to flow gas and fluids to surface since having production tubing installed.
Last week, Real Energy told the market a workover rig was about to start installing the tubing for the nearby Tamarama-3 well. In its quarterly report also released today, the company said this has now been done.
The company had completed a multi-stage fracture stimulation program at the start of October and reported both wells flowing gas to surface during an initial flowback period.
Real Energy said there was still a significant amount of frack fluids to be recovered from the formations, although it planned to report the flow test results to the market “as soon as they become available, likely in the next few weeks based on progress to date”.
Gas processing deal
In addition to its exploration and development progress at Windorah during the September quarter, Real Energy also inked binding deals with Australian gas majors Santos (ASX: STO) and Beach Energy (ASX: BPT) to process gas at the joint venture’s facilities in Moomba, South Australia.
The arrangement involves tying in the Tamarama wells at Mount Howitt, which is part of the Santos-operated gas gathering network in the Cooper Basin. The raw gas would then be transported to Moomba to be processed into sales gas and supplied to the east coast market.
The Tamarama wells are located within Real Energy’s wholly-owned permit ATP 927P, which has been estimated to hold 13.7 trillion cubic feet of gross prospective gas-in-place resources.
Since 2016, Tamarama-1 has flowed gas at variable rates up to 2 million cubic feet per day.
According to the company, reservoir modelling on Tamarama-2 and Tamarama-3 have suggested initial flow rates should exceed 3 million cubic feet per day in each well.
In its quarterly results published today, the company reported a cash balance of $5 million. It had also completed a placement during the quarter to raise $3.7 million (before costs).