Emerging gas developer Real Energy (ASX: RLE) has received positive indications of commerciality at its Tamarama-2 well in the Cooper Basin following recent well stimulation.
An initial flow rate of 2 million cubic feet a day was clocked from a flow test, with flowing tubing pressure of 1783 psi recorded.
Real Energy managing director Scott Brown expressed enthusiasm at the flow rates.
“This is a good result for Tamarama-2, which we believe will be a future gas producer,” he said.
“Importantly we are a step closer to commercialising a very large gas field and supports the drilling of future development wells.”
The Tamarama-2 well is located in the company’s ATP927 permit in south-west Queensland, which is considered very underexplored
The permit area has been estimated to hold 13.7 trillion cubic feet of gross prospective gas-in-place resources.
The next step for Real Energy will be to continue gathering data and other reservoir parameters on Tamarama-2 and 3 ahead of delineating a maiden gas reserve for its flagship Windorah gas project.
The Windorah gas resources are also located in its wholly-owned exploration permit, ATP 927P.
“We are on track to convert our large contingent resources of 2C and 3C into reserves and then start to deliver sustainable production from what is potentially a very large gas project in the heart of a proven Australian energy province, the Cooper Basin,” Mr Brown added.
The drilling of Tamarama-2 and 3 follows on from the initial discovery well of Tamarama-1 which has flowed gas at variable rates up to 2MMcf per day since 2016.
With a four-stage fracture stimulation program of its Tamarama-3 well complete, the company expects to release initial flow rates for the well in coming weeks.
Filling the east coast gas void
With east coast gas prices surging and a potential shortfall forecast in the next decade, Real Energy said it was well-placed as an emerging gas producer to supply the east coast market.
“The current gas crisis on the east soast of Australia, where last week the Sydney gas price hit $12 per Gj, is something we predicted when we founded Real Energy,” Mr Brown said.
“We positioned the company to take advantage of today’s gas situation, something that is hurting Australian industry.”
Real Energy intends to tie its three Tamarama wells into Santos’ (ASX: STO) Cooper Basin gas gathering network at Mount Howitt, before raw gas is processed into sales gas at Moomba for distribution to the east coast gas market.
Real Energy’s shares were last trading at $0.088.