Real Energy forecasts high flow rates at Windorah gas project based on reservoir modelling

Real Energy (ASX: RLE) has announced encouraging results from reservoir modelling at its Windorah gas project in Queensland, believing the future flow testing of its Tamarama-3 well will “prove the commerciality of the gas field”.

The Cooper Basin-focused oil and gas explorer announced last week that diagnostic fracture injection tests had been completed on the well to evaluate the permeability and stress.

Using this stress and permeability data in addition to enhanced fracturing designs, reservoir modelling work has concluded that initial production from the Tamarama-3 well should exceed 3 million cubic feet of gas per day.

Real Energy managing director Scott Brown said the results bring further positive news for the Windorah project, which is targeting initial pilot production in 2019.

“It is very much game on when the flow rates of Tamarama-3 eventuate as per the forecasts under reservoir modelling. It will prove the commerciality of the gas field,” he said.

The next phase of the Windorah development is the fracture stimulation of the Tamarama-2 and 3 wells.

“Hydraulic fracture stimulation work is scheduled for this quarter and we are now working with our chosen suppliers to determine firm dates to perform these works,” Brown said.

The first well at the project, Tamarama-1, has been flowing gas since 2016. By March 2018, it was reportedly flowing between 0.5MMcfpd and 2MMcfpd of gas.

Real Energy is aiming to develop an estimated 13.7 trillion cubic feet of gas-in-place resources to meet Australia’s east coast gas demand.

Alignment flow technology

According to the company, its Tamarama-2 and 3 wells are incorporating new well designs to enable enhanced productivity through better alignment between the hydraulic fracture and the wellbore.

This “alignment flow technology” is the result of extensive ongoing research by the University of Queensland’s Professor Raymond Johnson Jr, who is focused on improving fracking designs in the Cooper Basin.

Professor Johnson has been involved with design, execution and evaluation of reservoir stimulation treatments since 1980 and has almost two decades of experience working in currently producing unconventional oil and gas basins in the US.

He believes that an optimised hydraulic fracture and enhanced flow should result from implementing technology that better aligns the wellbore, perforations and the hydraulic fracture with the prevailing stress direction.

In a research impact statement, Professor Johnson said advances in his research “integrating geomechanics, hydraulic fracturing, reservoir engineering and production technology, will aid us in maintaining low-cost energy thereby benefitting overall economic growth in Australia by economically unlocking more of Australia’s unconventional gas resources”.

Professor Johnson has used the results of the recent fracture injection tests, as well as extensive log data, to prepare a four-stage hydraulic fracturing design to maximise coverage over the prospective intervals in Tamarama-3.

A similar process of testing and design will be performed on Tamarama-2 prior to its completion.

Real Energy shares were 4.76% higher at A$0.11 by midday trade.