The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Increase in C-2H IP30 https://app.sharelinktechnologies.com/announcement/asx/85e4214e043dcdab2458226e11f44a3b
• Carpentaria-2H (“C-2H”) has achieved a new average flow rate over 30 days (“IP30”) of 2.81 mmscf per day, equating to a normalized flow rate of over 3 mmscf per day per 1,000m of horizontal section. This represents an increase of approximately 17% over the initial IP30 rates announced in September 2022 despite partial reservoir depletion following the initial 51-day flow testing program. The current flow rate is 2.3 mmscf per day.
• This excellent result, achieved with a highly experimental and therefore unoptimized stimulation design, validates the soaking strategy that Empire has employed and will be incorporated into Empire’s development planning process which is well underway.
• North American reservoir engineering firm Subsurface Dynamics, Inc. (“SSD”) has analysed the flow testing performance of C-2H. SSD’s analysis indicates that development wells with 3km laterals in the C-2H area could generate total estimated ultimate recovery (“EUR”) of 6.2 BCF gas per well on a P50 basis and 8.1 BCF gas on a P10 basis. Most of this gas would be produced in the first 3 – 5 years, consistent with US shale basins, which would drive rapid recovery of invested capital.
• Based on Empire’s existing drilling and stimulation cost performance, the operations team estimates that development wells with 3km lateral sections and 60 fracture stimulation stages in the pilot phase can be drilled, fracture stimulated and completed for production for approximately $20 million per well (and likely below $15 million per well in larger scale development scenarios given the economies of scale that would be generated).
• This indicates that Empire could achieve upstream development costs of approximately A$2.00 to A$3.00 per mscf in future development scenarios.
• Flow testing is ongoing, and Empire’s management, subsurface and operations teams are progressing the work required to take a proposal to the Board for a Final Investment Decision for the pilot project later this year (“Pilot FID”).
Tenements https://app.sharelinktechnologies.com/announcement/asx/abdb6b1722465c74923b427906ba9c71
Annual report https://app.sharelinktechnologies.com/announcement/asx/c1564dd2edd98d7fc5279ad9cc8f501d
Aussies should have no doubts about who is behind the unprecedented increase in energy prices and the ensuing inflation. But sadly, it will be blamed on the "gas cartel"
Based on the released location photo during frac ops the gas flare line goes to the right, between two square ponds (bottom middle of the pad). The flare stack is not captured. If the flare is up - it would of being visible. Just too early; they may still have had CT in the wellbore for plugs mill out at the time of the satellite image
@newtofo, the main hurdle is government red/green tape - they require 6-month baseline water quality monitoring before frac. This means water two water bores per aquifer needs to be drilled and instrumented now for fracs in October. Maybe they have drilled it already. I would.
Sentinel satellite will pass tomorrow, but that's too early for the flare. 5 MMSCF/D can flow up casing w/o need for the production tubing. On Amungee NW-1H, we needed a Coil Tubing nitrogen lift to assist with cleanup; good chance they will need it as well, given the pressure of the first fracs done > a month ago already dissipated into formation. If that's a case - they'd be better of to bring workover rig earlier bc a lot more nitrogen is needed to lift water in annulus of 2" CT in 5-1/2" casing. N2 is delivered in liquid form; it boils off on the way and is expensive.
Bottom line - we may or may not see gas within two weeks, but don't get dissuaded; it is normal.
More sand equates to a larger propped fracture area and higher conductivity of the fractures. But sand/proppant delivered to NT cost ~10x of what it costs in US. There is a local company planning high efficiency sand local management, so eventually cost will come down and we should be able to push upwards of 4,000 lbs/ft
@BlueWiley, I'd say it is a better position to hold than TBN, as they won't require an immediate capital raise in a ****ty capital market. Not w/o risk, as they depend on others to execute. We are in a recession, and this may put downward pressure on anything energy-related
@ITGuy, SLB pumped stage 40 on Jan 11th. Cleanup started the same day.
Both SLB & Condor took 34 days to complete frac programs; Condor pumped less than half of the proppant & sand (6.23MMlbs from what TBN published re 1020m & 2,125lbs/ft). Fingers xssed for the synthetic polymer to break and not cause gummy bears issues w/ the formation water and iron. It's a good fluid when used properly.
I remember a sense of disbelief from the Tokyo Gas delegation at SEAAOC in 2017 when the Turnbull government introduced the "Australian Domestic Gas Reservation Mechanism." Safe jurisdiction, my a$$
@newtofo, propellant is something you put in a rocket (or under a stock;)), proppant or sand used in hydraulic fracturing.
Not impressed with sand intensity - was hoping for at least 3,000 lbs/ft.
Gas breakthrough can be expected in a ~week time. It is not uncommon for Beetaloo wells (very few) to come to a max rate straight away. Soaking was beneficial for rate improvement; the jury is yet to be called in on whether this is due to physical changes of the rock (imbibition; relative permeability to gas change) or just pressure build-up.
three rigs are up for sale:
"On 12 April 2022, Tamboran Equipment, LLC (a wholly owned subsidiary of Tamboran Resources Limited) entered into an agreement with HCI RMX, LLC to purchase two smaller rigs, Rig 300 and Rig 301 (with accompanying equipment), and a larger, more complete rig, Rig 403, for a total of US$21 million. The first two rigs, 300 and 301 were secured following an
initial payment of US$5 million. Subsequent monthly payments were made for the balance of the total transaction cost and the completion of the purchase of Rig 403 was finalised in December 2022 with the final payment. The Board approved the rigs for sale on 12 September 2022, subject to the finalisation of the purchase. On 23 December 2022, subsequent to the final payment, the asset was classified as asset held for sale. The sale is expected to complete in the next twelve months."
Rig 226 is a workover rig - it was always known that production tubing will be required in this casing size.
@ITGuy that post was for a plug and abandonment campaign with a photo of the cementing unit. Condor's CT and frac gear are up North atm
calorific value of Empire's gas is tad higher; Amungee Ethane is ~3% while Carpentaria C2~12%; C3-C4 1.77%
Listening to investors call now - Empire is quite positive.
There is no mud after frac, it's a flowback fluid or produced water.
https://app.sharelinktechnologies.com/announcement/asx/550ed2dacebc66bd5042e0962380a9a0
BEETALOO OPERATIONS UPDATE – SOLID PROGRESS BEING MADE TOWARDS COMMERCIALISATION
• Carpentaria-3H (“C-3H”) has been flow tested for 27 days and is currently shut in for soaking (the practice of shutting in a well for a period following fracture stimulation to maximise long-term productivity). Gas production rate has ranged between 2.3 million standard cubic feet per day (“mmcf / day”) and 5.7 mmcf / day with an average of 2.6 mmcf / day. Flow rates are yet to be optimized by the shut-in and soaking. Empire believes that higher flow rates will be achieved when the well is reopened.
• Carpentaria-2H (“C-2H”) has been brought back online to test the benefit of soaking with excellent results. A sustained average gas flow rate of 3.24 mmcf / day over eight days (“IP8”) has been achieved over the 927-metre stimulated horizontal section, approximately 21% higher than the initial IP8 with a lower rate of decline.
• This is a normalised flow rate of 3.5 mmcf / day per 1,000 metres at C-2H, demonstrating that soaking has had a material beneficial impact on flow rates, consistent with productivity improvements seen in other wells in the Beetaloo Sub-basin and in US shale gas basins.
• Empire intends to continue flow testing C-2H to develop an early production type curve that will be incorporated into Empire’s ongoing Front-End Engineering and Design (“FEED”) process. Management is working towards pilot project Final Investment Decision (“FID”) this year (subject to financing, gas sales agreement, regulatory approvals and Board approval).
• Petrophysical interpretation of Carpentaria-4V (“C-4V”) data has confirmed that net pay in the Middle Velkerri B is 20% greater and ~150 metres deeper than at the C-2H / C-3H location. C-4V formation evaluation results are being incorporated into the updated independent resource assessment that is expected to be complete in the coming weeks.
• Current cash balance is $18.2 million with recent drilling and stimulation projects coming in well under budget. The $15 million credit facility is available but undrawn. Final Beetaloo Cooperative Drilling Program progress payment of ~$7.6m is expected to be received soon.
• An investor webinar including Q&A will be conducted today at 11am AEDT during which Managing Director Alex Underwood will provide an overview of these results and investors can ask questions. Dial in details can be found below.
CONFERENCE CALL AND WEBCAST AT 11AM (AEDT) TODAY Managing Director Alex Underwood will present via conference call and webcast commencing at 11am AEDT today. Details are as follows: For Participants Pre-Registration Link: https://registrations.events/direct/OCP60701
@newtofo, I have some insight but won't betray trust of my friends. All I can say things are progressing, nothing out of ordinary.
Tectonics isn't new issue. My point - it can play a trick on an unsuspecting cowboy.
Kayalla needed a better artificial lift system. I'm not prepared to throw a towel on it yet.
@newtofo, what you describe is known as "engineered completions" (as opposed to "geometric"). Spacing between individual fracs is much closer - 6 to 15m. What you quoted is a stage length.
Word of caution with blindly applying North American experience. They routinely use concept of Brittleness as something to thought out to increase frac complexity and achieve higher stimulated volume. In strike-slip & reverse fault tectonics of Beetaloo they'd be up for a rude awakening with difficulty placing fracs and poor results.
They are not paying for wells but for (rapidly declining) production and acreage position to drill more wells (doubtful there).
Jul 2022 not the most recent (free version), but it gives an idea. Select Chesapeake, move the tabs. Wells also produce gas ("Product" tab).
https://novilabs.com/blog/category/shale-oil-gas-insights/eagle-ford/
Number of wells matter - P&A liability.
AUD 12 price cap introduced - you can be sure it becomes a floor
https://aemo.com.au/en/energy-systems/gas/gas-supply-hub-gsh/data-gsh/data-dashboard