Real Energy on track to start well stimulation operations at Windorah this month

Real Energy ASX RLE start well stimulation operations Windorah
Real Energy expects to commence operations in the next two weeks, with reservoir modelling suggesting initial flow rates in excess of 3 million cubic feet of gas per day in each well.

Cooper Basin-focused Real Energy (ASX: RLE) is close to starting the fracture stimulation of two wells at its Windorah gas project in Queensland, with the aim of proving commercial flow rates.

The oil and gas explorer today said fracking operations at the Tamarama-2 and Tamarama-3 pilot development wells in the company’s wholly-owned ATP927P acreage was expected to commence in the next two weeks.

Last month, Real Energy announced it had appointed major oilfield service company Halliburton Australia to conduct the operations, which will involve a three-stage stimulation in Tamarama-2 and four stages in Tamarama-3 in the Toolachee-Patchawarra formation sections at depths below 2300m true vertical depth.

According to the company, reservoir modelling has indicated initial flow rates should exceed 3 million cubic feet of gas per day in each well.

Real Energy managing director Scott Brown said the stimulation program was an important step towards commercialising the Windorah gas field.

“We believe we will be able to prove commercial flow rates with these wells which will form the basis for a much broader field development program,” he said.

The company will update the market once mobilisation works commence, Brown added.

Enhanced productivity through new well design

The two 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 Professor Raymond Johnson Jr at the University of Queensland to improve fracking designs in this area of the Cooper Basin.

According to Professor Johnson Jr’s research, by better aligning the wellbore, perforations and the hydraulic fracture with the prevailing stress direction, an optimised hydraulic fracture and enhanced flow should be achievable.

Pilot production

Real Energy is targeting initial pilot production from its three Tamarama wells in 2019. In addition to Tamarama-2 and 3, this includes Tamarama-1 which has been flowing gas since 2016.

The company is aiming to develop an estimated 13.7 trillion cubic feet of gas-in-place resources at the Windorah project to meet Australia’s east coast gas demand.

In addition to ATP927P, containing the Tamarama prospect, the company holds 100% ownership in another large permit in Queensland – ATP1194PA.

According to the company, seismic interpretation and existing petroleum well data has shown the Toolachee and Patchawarra formations to be significant across much of its acreage. These formations are well-known throughout the Cooper Basin for holding and producing gas.

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.