Perth Basin domestic gas producer Empire Oil & Gas has announced that flow testing of its Red Gully North well has confirmed good flow rates of both condensate and gas, indicating the well has found a potentially commercial hydrocarbon accumulation.
The flow rates of up to 419 barrels of condensate per day and 1.27 mmscf of gas per day over an 8 hour test of the C sand are encouraging and a further 24 hour flow will be carried out to determine stable gas, condensate and water rates.
The production test was suspended after 8 hours in order to source a larger tank to store the increased condensate volume and secure regulator approval to store produced water in the drilling site pond. Formation water was flowing at 684 barrels/day at completion of the test.
The C sand hosts an estimated 45 per cent of the well’s contingent gas reserve of 7.5PJ according to pre-flow reserves analysis. The remaining contingent reserves were in the Upper D sand, which did not flow to surface during the production test. Empire is currently assessing the reasons for the D sand result, with low permeability measurements the current focus of its study.
Empire Oil & Gas CEO Ken Aitken said the Company’s attention would now turn to how best to complete the well test to fully understand the C sand’s flow potential and then perform a commercialisation study of the discovery.
'It is promising that a well which has generated more than its share of technical challenges has produced gas flows in line with our expectations combined with excellent condensate rates. We knew there was gas in the well, but the extent of liquid hydrocarbon production has been a real bonus for Empire,' he said.
'The formation water flow rate is still higher than we would have preferred however, the 24 hour flow period will provide further data on the long term stability of the water production. If the water rate remains high, there are a number of avenues available to deal with that. Our experience at the adjacent Red Gully well will assist with addressing this issue.'
