The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
@Newtofo,
Kayalla shale is a resource. A lot more work needs to be done to convert it into reserves. There are two potential issues with it. One, high liquid content may be a curse, not a blessing. It takes a lot higher permeability to flow liquid compared to gas (orders of magnitude higher viscosity; relative permeability issues). Second, the formation appears to be heavily naturally fractured. This can be both good and bad, depending on the situation with the formation water. High TDS brine was produced. It can be a result of leaching out minerals or Mesoproterozoic highly-saline water. Believe only ~1/3 of frac fluid was recovered b4 they gave up.
We need to try drilling deeper wells (higher temperature - less liquid), different style fracs, and different production tactics. There is not enough capital atm to apprise proven reserves in Velkerri; the industry will come to Kayalla at some later stage. I'd treat it as a low-cost call option if one can afford it
Scary-mgour-ing tactics
@dprussky, from shared photos they are using a vertical P-Tank as a test separator. I know the service provider, power generation, or compression is unlikely to be part of the scope. All Origin's gas (Amungee NW-1H & Kyalla 117) was flared. Amungee used a bit of N2 (because it was already there), Kyalla - a lot, the wrong kind, and not long enough
@805slo, the sky is clear - we are in the dry season. Appears as no heat source yet. I'm guessing - some sort of intervention, NT lift or cleanout.
https://apps.sentinel-hub.com/eo-browser/?zoom=17&lat=-16.34627&lng=133.88354&themeId=DEFAULT-THEME&visualizationUrl=https%3A%2F%2Fservices.sentinel-hub.com%2Fogc%2Fwms%2Fbd86bcc0-f318-402b-a145-015f85b9427e&datasetId=S2L2A&fromTime=2023-05-13T00%3A00%3A00.000Z&toTime=2023-05-13T23%3A59%3A59.999Z&layerId=6-SWIR&demSource3D=%22MAPZEN%22
Shale and coal are different animals. Gas in shales is in primary porosity, pores inside kerogen (coal-like organics), and absorbed on the kerogen itself. The main difference is how methane is preserved (prevented from escaping). Coal seam gas (CSG, CBM) is pretty much all desorbed; a column of water keeps it—Shale gas - by the low permeability of the shale.
What matters is the Total Organic Content (TOC) of the shale, its porosity, permeability and low content of nasty clays that can expand in contact with water.
You have to try it before making any conclusions, much less - moronic statements like he did.
@Origin789, the company can't change how the lease appears on the sat image, to my knowledge, unless they put a giant tent over the site. Shades of blue you see during frac operations is the cloud cover - it was bloody wet at times.
There is no hiding from the eye in the sky. Next passing in on Sat morning; data may not be available till Sun.
https://apps.sentinel-hub.com/eo-browser/?zoom=10&lat=-16.39327&lng=133.90549&themeId=DEFAULT-THEME&visualizationUrl=https%3A%2F%2Fservices.sentinel-hub.com%2Fogc%2Fwms%2Fbd86bcc0-f318-402b-a145-015f85b9427e&datasetId=S2L2A&fromTime=2023-02-22T00%3A00%3A00.000Z&toTime=2023-02-22T23%3A59%3A59.999Z&layerId=1_TRUE_COLOR&demSource3D=%22MAPZEN%22
That's bonkers. Neither of these roads has anything to do w/ Beetaloo. See for yourself - activate the "concealed geological boundaries" layer http://strike.nt.gov.au/wss.html
There are not even petroleum exploration licenses at Santa Teresa or Tanami
Typical activist's BS - SREBA report is extremely detailed on groundwater. The only time I've seen TOs (Traditional Owners, aboriginal folks) is either when they come to the location as part of an organised "community engagement" event; or at a pub. The place is a scrubland with just cattle roaming around. Some farmers use bore water for cattle, and Cambrian Limestone Aquifer is prolific AF. And don't get me started on climate
Nobody known how many people lives in Mexico City - by some estimate, up to 30 MM - more than entire population of Australia. Population density of NT is lower than ?hat of bloody Siberia
@newttofo, tnx, I didn't realize I have two accounts. Now can't delete the 2nd one
sorry, I can't say much. Indeed, hardly visible on SWIR filter. On prior wells, peak gas production happened soon after the start. This could be due to the contribution from natural fractures; the jury is still out.
EEG soaked C-2H for nearly five months (Sep to Feb), and C-3H is still soaking (2 months). A2H isn't soaking, not intentionally, anyway
I am hearing industry chatter that 2nd well will be a short lateral one. Also, a protests activity at the Port of Darwin where H&P rig landed. Greenies are loosing and getting desperate
The flare (or a BBQ/dumpster fire) was in the lower left corner. Hope production tubing is installed by now. The well typically would require "a kick" via lighting fluid column with nitrogen. CT will be needed unless the production string doesn't have a packer or has gaslift mandrels installed (rare in Oz)
A joke came to mind. A FIFO worker suspects his wife is cheating on him and instructs little Johnny to keep an eye on momma. Upon return from the hitch, Johnny reports: the neighbour came, he and mom started hugging and kissing and went to the bedroom. - And then??? - I don't know, they closed the door and switched off the light. -This uncertainty is killing me!
I was hoping to see the flare after satellite passing this morning, it isn't thee yet
https://apps.sentinel-hub.com/eo-browser/?zoom=18&lat=-16.34635&lng=133.88407&themeId=DEFAULT-THEME&visualizationUrl=https%3A%2F%2Fservices.sentinel-hub.com%2Fogc%2Fwms%2Fbd86bcc0-f318-402b-a145-015f85b9427e&datasetId=S2L2A&fromTime=2023-04-18T00%3A00%3A00.000Z&toTime=2023-04-18T23%3A59%3A59.999Z&layerId=6-SWIR&demSource3D=%22MAPZEN%22
@WetWater - in a typical shale formation, pressure from injected water will stay high for ~weeks. Velkerri seems different in that regard; declines are faster. I don't think it is caused by formation being "dry", although some folks (including reserves certifier) believe this to be the case. Either way, once the pressure dissipates, it will take a longer time for water to come out. We need more wells to come up with an optimum flowback strategy.
I have no insights. My guess - is they need to bring the rig earlier, most likely because well couldn't turn the corner and flow on its own. Probably wasted time during CT milling out or haven't used aggressive enough flowback; supercharge from frac pressure dissipated. Now this water has to be recovered via lowering bottomhole flowing pressure below the hydrostatic of water. For this, they need plenty of gas in 5-1/2", or run smaller production tubing where the flow velocity is higher so water and gas won't separate. If lucky, they may be able to run tubing w/o a packer and avoid bringing the CT unit back (had to release it). Weird flare is going - meaning it goes through the separator, which is too early as plenty of sand should be still coming back. Perhaps gas bubbling through the column of fluid w/o lifting it. Hard to know without being there.
Putin was caught sponsoring greens in Europe to stop shale gas development ("best investment is a green investment"); China would be silly not to do the same. And they are anything but.
An even bigger reduction comes from substituting coal for gas, or using gas to backfill when the wind isn't blowing. Btw, Empire reported Carp-2 CO2 under 1%.
@newtofo, as I said, give it time. There was 50/50 chance the well will cleanup by itself, w/o need for N2 lift. Use of 5-1/2" casing reduced that chance; they may need to run production tubing unless it's a barn burner. Sky is clear and satellite is passing about now, but even if there is gas, they would likely be flowing via the open-top tank as there would be too much solids to put it through the separator. Something like this https://www.scf.com.au/products-services/tank-containers/bulk-liquid-storage/45ft-flowback-tank/