Real Energy a ‘few weeks’ away from discovering flow rates for Tamarama-3 well

Real Energy ASX RLE flow rates Tamarama-3 well gas
Real Energy's four stage stimulation program at Tamarama-3 has now been completed.

Oil and gas explorer Real Energy (ASX: RLE) has reported incremental progress at its flagship Windorah gas project in Queensland, Australia.

The resources junior declared that it has completed a four-stage fracture stimulation program of its Tamarama-3 well at a depth below 2,300 metres, considered as a critical milestone for the company to add to its existing gas well, Tamarama-1.

Despite flow test results remaining a “few weeks” away (in which time the oiler plans to conduct a flowback operation), Real Energy reports that a total of 6,100 barrels of frac fluid was pumped and approximately 378,600 pounds of proppant were injected into the formations over the course of the four-stage stimulation program.

Real Energy said that the flow test will commence once most of the frac fluids are recovered from the formations.

The stimulation operations were carried out by Halliburton Australia, the Australian arm of one of the largest oilfield service companies in the world.

One of its key specialisations in recent years has been fracking stimulation and facilitating hydrocarbon production based on fracking, otherwise known as “unconventional exploration” within oil and gas production.

As a way of telegraphing its intended results at Tamarama-3, Real Energy has used the example of Tamarama-1 to showcase its previous success in drilling viable wells with strong flow rates.

The gas junior currently wields 100% ownership within 2 large permits in Queensland, all included within its Windorah gas project – labelled as “ATP 927P” and “ATP1194PA” with prime focus currently on the Toolachee and Patchawarra formations.

According to Real Energy, these formations are well-known throughout the basin for holding and producing natural gas.

Furthermore, the junior says that the seismic interpretation in conjunction with existing petroleum well data has determined that the Toolachee and Patchawarra formations are “significant across much of its existing acreage”.

On a broader basis, Real Energy wants to solidify its operating position in the area by adding production capacity specifically in the Cooper basis – considered as Australia’s most prolific onshore producing petroleum basin.

Fracking towards production

Today’s news of a four-stage stimulation of Tamarama-3 being successfully completed is significant as it brings the company closer to opening another avenue of gas production, that could potentially supply the company’s largest gas flow for several years to come.

Real Energy added a further caveat to this morning’s news by saying that its operations were completed “without any environmental and safety incidence”; another factor that is considered positive in helping Real Energy to move into production as quickly as possible without any regulatory or environmental factors causing delays.

Both its Tamarama-3 and Tamarama-2 wells are undergoing stimulation operations which Real Energy says is “an important step for the company towards commercialising our gas resources in the Queensland Cooper Basin,” according to Real Energy managing director Scott Brown.

Earlier this year, Real Energy’s boss said that he believes the company will be “able to prove commercial flow rates with these wells, which will form the basis for a more aggressive field development program,” that is ultimately looking to develop large reserves and therefore satisfy the growing demand for gas on Australia’s east coast.

George is an award-winning market analyst who has authored articles and editorial opinion pieces for multiple publications around the world. He has written about a wide variety of topics including financial markets, stocks, trading, politics and economics.