Real Energy spuds Tamarama-3 after hitting gas pay at Tamarama-2

Real Energy ASX RLE spud Tamrama-3

A day after hitting gas pay at its Tamarama-2 well, Real Energy (ASX: RLE) has spudded its Tamarama-3 well within its Windorah gas project in Queensland.

Tamarama-3 is about half-a-kilometre from Real Energy’s Tamarama-1 and is the most recent well to be drilled as part of the company’s gas appraisal program, which is designed to shore-up commercial gas flow from Windorah.

If Tamarama-3 is successful, Real Energy will evaluate establishing pilot production and connect flow lines to sell the gas to Australia’s east coast market.

Tamarama-2

Only yesterday, Real Energy reported it had hit gas pay while drilling the Tamarama-2 deviated well.

Preliminary results revealed drilling had encountered combined net pay of 35m over a 90m logged interval of the Toolachee and Patchawarra formations.

Using wireline logs, mud log readings and drill cuttings, Real Energy also interpreted there was 3.8m of net gas pay in the Nappamerri 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,” Real Energy managing director Scott Brown said.

“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,” Mr Brown added.

Windorah gas project

The first well spudded at Windorah was Tamarama-1 and this well was flowing between 0.5 million cubic feet per day and 2MMcfpd during March.

According to Real Energy, Windorah hosts about 13.7 trillion cubic feet in gas resources.

In addition to its plan of setting up pilot production and selling gas to the east coast market, Real Energy aims to convert its contingent resources into reserves by the end of the year.

In readiness for successful pilot production, Real Energy has secured an offtake arrangement with Weston Energy to supply 3 petajoules of gas per annum for an initial five-year period.

Real Energy also clinched a memorandum of understanding with Santos to process its Windorah gas at Santos’ Moomba plant.

By mid-afternoon trade, Real Energy’s share price had dipped 2% to A$0.095.

Lorna has more than 10 years experience as a finance journalist and editor. She has written for an array of industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has covered a myriad of small and large cap ASX and dual-listed stocks.