Strike Energy Limited (Strike) provided Wednesday an update on the flow back and testing operations at the Le Chiffre 1 and Klebb 1 wells in the Southern Cooper Basin Gas Project in South Australia since its previous announcement dated July 2.
Flow Back and Testing Operations
Flow back operations at Klebb 1 commenced July 1 from the Vu Upper stage only, with high initial flow rates (up to 3,000 barrels per day) being observed. Coil tubing operations, including circulating fluid and nitrogen pumping, were then undertaken to clean the wellbore and mill the inter stage plug and to artificially lift fluid out of the well. Overall 2,800 barrels of fluid was recovered from both zones and the well is currently shut in for ongoing pressure observation.
Details of the flow back and testing operations completed to date at each well are summarized below.
Analysis of the fracture stimulation and the flow back rates and pressures indicate that the coals at Le Chiffre have average permeability of up to 25 millidarcy (mD) with those at Klebb, up to 16 mD. These are exceptional permeabilities for coals at these depths and combined with formation thickness, drive productivity that significantly exceeds our pre‐test expectations.
Due to the limited supply of nitrogen available at the well locations, only short term flow tests were able to be conducted. Laboratory analysis of the return gas stream at Le Chiffre has confirmed that hydrocarbons were produced to surface during nitrogen lift flow back. Analysis of the gas samples collected at Klebb has not yet been completed.
These observations, combined with the volumes of gas previously measured to have desorbed from core samples confirm that gas is present within the coals. A more accurate estimate of the in‐situ gas content and saturation of the coals will require further production testing. This testing phase will be designed to achieve a reservoir pressure drawdown around the existing wells sufficient to establish sustained gas flow and will most likely require pumps to be installed in the existing wells together with offset wells to be drilled and completed.
The planning for this program including water management is currently underway in parallel with ongoing analysis of the test results obtained to date. In the meantime, the fracture stimulation pumping and flow testing equipment have been demobilized from site.
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