Gas flow from Egilabria 2 Shale Gas Well
THE ROADHOUSE BOWSER: Armour Energy (ASX: AJQ) advised the market that the company’s Egilabria 2 well has started to continuously flow gas through a test separator during the flowback recovery process.
The company said continuous flow is being observed with intermittent flaring.
However, Armour also pointed out that it has not yet measured the flow rate.
The company expects to begin flowing annulus gas through the separator in order to measure a stabilized flowrate by the end of the coming week, which it expects to further increase as more stimulation fluids are recovered.
The Egilabria 2 well is located in ATP1087 in north‐west Queensland, 300 kilometres north of Mt Isa and is 100 per cent-owned and operated by Armour.
The well is currently flowing back a mixture of stimulation fluids and gas via a downhole PCP pump through the tubing.
The start of continuous gas flow followed eight days of fluid pumping of up to 122 barrels per day.
To date 57 per cent of the original 11,400bbls stimulation fluids that were originally pumped into the well have been flowed back.
This is an increase of 12 per cent since the flowback was recommenced earlier this month.
The Lawn Shale is present in Egilabria 2 between depths of 1,583 and 1,720 metres, at 137m thick, and hosts up to 8 per cent Total Organic Content (TOC).
“During the drilling of the well, significant gas shows and flares were encountered between 425 and 1,870 metres vertical depth,” Armour Energy said in its announcement to the ASX.
“Analysis of the hydraulic stimulation undertaken in the lateral well, drilled from 1,300m depth during 2013, shows that a single zone accepted the highest volumes of larger sized proppant (used to create and hold open a conductive hydraulic fracture).
“It is therefore expected that the majority of the returning fluid and gas flow will be coming from this single zone.”
Armour’s drilling activities in 2013 included the drilling of the Egilabria 4 well, approximately 7.5kms to the north which also tested both the Lawn and the deeper, larger Riversleigh Shale Formation 250m thick.
TOC contents in the Riversleigh shale were up to 11 per cent.
Gas shows were registered against both the Lawn and Riversleigh Shales in Egilabria 4.
The company said it considers the flow test results to date from Egiliabria 2 to be very encouraging adding they substantiate the potential for economic gas flows from successfully stimulated gas wells in the Lawn Shale in the forthcoming programs.
Email: info@armourenergy.com.au
Website: www.armourenergy.com.au