Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Wet, I was excited by the quantity of gas coming out of the DFITS--I started buying back in this AM,
It was just a fact nothing more or less, I don't know actual Santos well facts and neither does anyone else, they claimed a discovery. Gas is ok but liquids pay the bills ! Millions will be spent to get gas to markets, but I only need a truck for liquids.
BO: You are missing the whole point of that article. It's not the potential revenue generated by 1.2 Mmcf - its the fact that this 1.2 Mmcf/day is flowing from a tight shale formation from a well that has only been tested using DFIT. I'm not an engineer but know that a DFIT test is basically a very small frack test that is expected to give a 'puff' in return - not a continuous flow of gas in the quantities that Santos is seeing. If the Santos well produces 1.2 Mmcf/day out of 2-3 DFITs then what will that well produce with a 1500 - 2000 meter full blown frack job - that is the excitement of the announcement.
Drilling cost are higher in OZ and the dollar is worth less than the US. OZ gas currently brings about 2x-3x the price - So many variables I'm not qualified to pin down actual price but Origin/Santos seem to think the Beetaloo holds lots of potential with the current drilling cost/ revenue model. POQ has referenced future gas demand predictions due to the ever increasing Asian market - the demand just continues to grow - thus INPEX's plan to build about four more LNG trains in Darwin.
Once again you seem to always try to paint the glass half empty - must be kind of a downer to be you!
1.2 mmscfd is equal to about $ 1,300 in New Mexico USA, the well head price in Australia is higher, but a 30 % difference in US and Oz dollars.
Thanks Newtofo,
You've answered the question I was wondering about. I thought they might go off at an angle to the original horizontal well but didn't realize it would not be 180degrees from the old one. It will be good to know the drilling as started again from Origin and yes great news from Santos..
Atb,
Northern
"Production testing is ongoing, with test results confirming a gas discovery in the Middle Velkerri shale gas play," Santos said.
"Gas flow rates of rates of over 1.2 mmscf/d (million cubic feet per day) have been recorded, exceeding initial expectations for the vertical well.
"Preliminary gas composition analysis indicates 90% methane, less than 5% total inert content and 3% ethane.
"The results at Tanumbirini-1 provide critical data to inform the next phase of appraisal, which is expected to include the drilling and multi-stage stimulation of two horizontal wells commencing in the first half of this year."
-
https://www.katherinetimes.com.au/story/6592511/energy-companies-strike-encouraging-flows-of-gas-in-the-nt/?cs=1459
Extremely positive news, hopefully we follow up with our own!
Hey Wet -- Not too sure what the 4th DFIT zone was -- as they only have three Velkerri's like we do, but their update in the fall was for 4 DFIT's that Schlumberger did for them in late October to early November. Maybe a possible DFIT into the Hayfield zone, but that is just a guess as they definitely don't have any of the Kyalla in their permitted area. My guess is the vertical flow test to reach 1.2 mm cfd -- had to be across all three of the A, B, and C shales -- as there is no way they got this volume from just one of the mid-Velkerri's. Still really good news for Falcon -- holding the majority of the total acreage.
Newtofo: Good news from Santos. Maybe the zone(s) included in the flow test will clarify at some point - I am betting more than 1 zone - If only one zone then Holy Moly!! You mentioned 4 middle Velkerri DFITs? Do they have an additional Velkerri zone to Origin's A, B and C shales? Curious if there were a sub-zone - maybe if I missed something along the way. Anyway good news for the Velkerri with its 95% aerial coverage of Falcon's Beetaloo concession. POQ recently said that a successful Santos test would do nothing but help prove up the commerciality of the Velkerri - the stage 3 wells would still be required but the Tamburini is another great data point in the Middle Velkerri shale.
So nice to talk about the asset. And, good talk on the asset. Thanks, newtofo!
Northern, there has been no announcement of the new track being initiated as yet, but that would have to come from Origin first -- so if the new track hasn't started -- it certainly should be very soon. The rig and entire drilling team is still on site -- so they wouldn't be delaying any longer than necessary.
Yes, they use the existing vertical well -- so that very deep expensive portion doesn't have to be drilled again, and they will kick off at a 180 degree reverse direction from the first 700 meters -- just to make sure they are not going to run into any issues with this well bore -- hopefully.
This news from Santos about 1.2mm cu. ft. per day from only the vertical fracks in the mid-Velkerri certainly takes some of the sting out of the 700 meter down hole problem in the Kyalla well. We don't know as yet whether this amazing flow rate from Santos was from all four zones in the mid-velkerri that they did the DFIT tests on - or from less than four, but they achieved a higher flow rate than our Amungee H1 did over 600 meters -- so this has real positive implications for stacked plays in the just the mid-Velkerri formation alone.
section that they abandoned will they go back to the base of the vertical section and start drilling from there? Just wondering how this works, in terms of avoiding the troublesome section they hit at 700m. Also would there be an RNS to say the drilling has restarted again, or could they already be drilling the new side track section?
Atb,
Northern