Emperor Energy Ltd (ASX:EMP) has used upgraded dynamic production modelling to increase its base case production rate to 125 million standard cubic feet (mmscf) per day at Judith Gas Field in the Gippsland Basin, off the coast of eastern Victoria
This has been estimated in the modelling by utilising five vertical production wells sustained across a minimum period of 12 years and is a 50% increase from the previous production modelling at 80mmscf/day using a 4-well field development.
Consequently, Emperor has commissioned Wood Mackenzie to carry out an economic assessment of the Judith Gas Field Project on this new base case with outcomes due in January.
The company believes that Judith Gas Field will remain economically viable despite the recent gas pricing cap introduced by the Australian Federal Government.
What’s more, Judith Gas Field is in a prime position to supply gas to support Victoria’s transition to renewable energy sources.
Dynamic modelling results
In the revised modelling, production rates decline gradually after 12 years remaining at 87mmscf/day after 20 years.
The revised modelling also incorporates higher gas saturations in the Judith and underlying Longtom gas sands as determined by recent corrections to the Judith-1 Well petrophysical log interpretation.
Dynamic Modelling Grid showing well locations.
Prime position
The Judith Gas Field is in a prime position with respect to the Eastern Australia gas market, being proximal to the largest domestic gas demand state (Victoria) where gas supply will be critical to support the transition to renewable energy sources and the reduction in the high emissions generated by brown coal-fired electricity generation.
The company considers that the Judith Gas Field presents a great opportunity to develop a new, competitively priced domestic gas supply when compared to LNG imports or gas transported over long distances.
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