Within the first 30 days following reopening, Empire Energy Group Ltd (ASX:EEG, OTC:EEGUF) has revealed increased gas flow rates at an average rate of 2.8 tera joules per day at its Carpentaria-3H( C-3H) well in the Beetaloo Basin, Northern Territory.
C-3H, which was brought back online in early August, demonstrated the material benefits to productivity of soaking, through significantly increased gas flow rates.
Notably, the ‘post-soak’ average daily production rates have increased 30% over the IP27 ‘pre-soak’ test conducted during the March quarter.
Flow testing is continuing at C-3H to further refine a production-type curve before incorporating it into Empire’s ongoing Front-End Engineering and Design (FEED) process for the Carpentaria Pilot Project.
Positive implications for productivity
Empire managing director Alex Underwood said: "The Empire team is pleased to see increasing flow rates at C-3H which replicate the improvements in C-2H flow rates post-soaking.
“The technical learning that is occurring is rapidly building our understanding of how to develop the Beetaloo’s Velkerri Shale.
“We believe that this will have positive implications for the productivity of future development wells.
“We continue to progress our planning for the Carpentaria Pilot Project and are on track to seek a final investment decision from the board to progress to commercial production from EP187 in the months ahead.”
Higher sustained rate
The C-3H was reopened on August 3, 2023, after about five months of shut-in for soaking.
Following the reopening, gas was produced at a higher sustained rate than the original pre-shut-in 27-day cleanup extended production test (EPT) undertaken through January and February 2023.
The IP30 rate following reopening is 3.3 mmscf/day (3.8 TJ/day).
C-3H was progressively opened with a restricted choke over the 30 days and is currently flowing at 2.6 mmscf/day (2.9 TJ/day).
This significant increase, coupled with the material improvement observed at Carpentaria-2H (C-2H), further confirms the strategy of shutting in and soaking as an effective practice for improving gas flow rates. This practice may improve total gas recovery over the life of the well.
Forward plan
Empire expects improved recovery and rates in future wells as it adapts drilling and completion lessons learnt from executed work programs.
The C-3H testing further affirms a gas production type curve generated from the early and unoptimized C-2H production testing that indicated development wells could exceed commercial thresholds.
Nonetheless, the type curve will be refined with ongoing production testing for incorporation into the final investment decision for the Carpentaria Pilot Project
Underwood adds: “In the success case, Empire may commence commercial production from the Beetaloo Basin by early 2025, a time when incremental gas supply into the Northern Territory and Australia’s East Coast will be critical as existing sources of supply decline.
“Recent announcements by Empire and APA Group detailing the work we are doing together reinforce the opportunity to transport large volumes of low-CO2 Beetaloo gas to the East Coast in years ahead.
“We look forward to sharing further updates with shareholders on these value accretive work streams in the near term."