Real Energy hits gas pay at Tamarama-2 in Cooper Basin

Real Energy ASX RLE gas Tamarama-2 Cooper Basin drilling
Ensign Rig 964 drilling at Real Energy's Tamarama-2 well.

Oil and gas explorer Real Energy Corporation (ASX: RLE) has hit gas pay while drilling the Tamarama-2 deviated well at its Windorah gas project in south-west Queensland.

The company today announced preliminary interpretation of wireline logs, together with mud log readings and drill cuttings, indicated the well encountered combined net pay of 35m over a 90m gross logged interval of the Toolachee and Patchawarra formations.

The data also indicated 3.8m of net gas pay in the Nappamerri formation, Real Energy reported.

Tamarama-2 is one of two wells being drilled as part of a pilot development program at the project, located in the company’s wholly-owned exploration permit ATP927P in the Cooper-Eromanga Basin.

The program follows the drilling of the Tamarama-1 vertical well, which was spudded in 2014 and underwent a five-stage fracking program in 2016 before flow testing began.

By March 2018, Real Energy reported gas had been flowing from this well at variable rates between 0.5 million cubic feet per day and 2MMcfpd.

Real Energy managing director Scott Brown said preliminary results from Tamarama-2 were consistent with the company’s geological model.

“The well is located 765m from Tamarama-1, and most, if not all gas sandstone units in the Toolachee and Patchawarra formations section in this well could be easily correlated to those in Tamarama-1,” he said.

According to the company, petrophysical evaluations of Tamarama-2 indicated 13.85m of net sandstone gas pay in the Toolachee formation, compared to Tamarama-1’s estimated 11.5m of net pay from the same formation.

“The net gas pay encountered in Tamarama-2 is very pleasing for Real Energy and reinforces our view that the Windorah gas field holds considerable unlocked value that we are only just starting to tap,” Mr Brown said.

Tamarama-2 has now been cased at a total drilled depth of 2581m and suspended for fracture stimulation.

Mr Brown said the drill crew was now mobilising to drill Tamarama-3, which is “likely to begin next week”.

Windorah gas development

The Windorah gas project has been estimated to hold 13.7 trillion cubic feet of prospective gas resources.

Last month, Mr Brown told Small Caps that the company planned to establishment pilot production from the Tamarama wells (once they have been successfully established) to distribute gas to Australia’s east coast market.

Real Energy is also planning to convert its contingent resources into reserves and is aiming to have this assessment completed by the end of the year.

The company has inked an offtake deal with Weston Energy to supply 3 petajoules of gas per year to the Australian gas retailer for five years.

It also has a memorandum of understanding with Santos to process gas at its Moomba plant in South Australia.

Danica has extensive experience writing and editing business news in the Oceanic and Southeast Asian regions. She has written across a range of industries including oil and gas, mining, energy, science and research, retail and travel. Danica has covered small and large cap companies listed on the Australian, Singapore, Hong Kong, Indian, London and Toronto exchanges.