Real Energy Upgrades Gas Resource in Cooper Basin Permit to 13.76 Tcf

Cooper Basin focused oil & gas exploration company Real Energy Corp. Ltd. provided Tuesday details of its independent estimates of contingent gas resources and upgrade its unconventional prospective gas estimates at its Cooper Basin Permit, ATP927P in southwest Queensland, Australia.

The resource upgrade follows the successful drilling and testing program undertaken by the company during the 2015 financial year, with the prospective OGIP resources for ATP927P effectively increasing by more than 141 percent to 13.761 trillion cubic feet (Tcf) (13,761 billion cubic feet or Bcf) from pre-drilled estimates of 5.7 Tcf.

The estimates of contingent gas resources and unconventional prospective gas resources in ATP927P have been independently certified by DeGolyer and MacNaughton, a leading international petroleum industry consulting firm.

Contingent Resources

The estimates of contingent resources are based on the area surrounding the two successful gas wells, Queenscliff-1 and Tamarama-1, located within the exploration permit ATP927P. Discovery status is based on definition under the SPE/WPC Petroleum Resource Management System (PRMS) 2007. A summary of the gross estimates of contingent gas resources for ATP927P is provided below:

  • Resources Category (in Bcf)
    • 1C - 77; 2C -276; 3C - 672

Prospective Resources

In addition to the Contingent Resources, the mean gross prospective natural gas resources for ATP927P are:

  • Resources Category (Bcf)
    • Prospective OGIP (Original Gas in Place) - 13,761
    • Prospective Recoverable Gas Resources - 5,483

The Contingent Resources estimates are based on the arithmetic summation method for estimates of gross wet gas contingent resources quantities as at June 30. The gross contingent resources are defined as the total petroleum that is potentially recoverable from known accumulations.

The target intervals are Permian age lacustrine and fluvial sediments of the Toolachee and Patchawarra formations. Existing well data and two-dimensional (2-D) seismic lines, significant log and test data have been gathered to characterize the target interval. The data was gathered from the subject wells and open file data from wells in adjacent permits. Information from these wells was used to generate petrophysical properties and thickness used to prepare the resource calculation.

The well development of Toolachee and Patachawarra Formations assumes 80-acre well spacing. The procedures used to estimate the contingent gas resources are based on common North American practice for resources of this type. The potential well locations around the discovery wells for the 1C, 2C & 3C are 25, 81 and 169 wells respectively.

The resulting low, best, and high estimates of area, thickness, petrophysical parameters, and recovery factors were used as the starting point for a probabilistic analysis of contingent resources. These parameters were fitted with various types of distributions that were sampled as inputs to a Monte Carlo simulation.

Real Energy Managing Director Scott Brown commented: “We have been extremely pleased with the results from our first two exploration wells, which have resulted in a substantial contingent gas resources booking. We remain confident that there is significant scope to further grow the contingent gas resources in the future.”

“Real Energy is looking to frac the Queenscliff-1 and Tamarama-1 wells to prove the deliverability of the gas resources. Geomechanical modelling and frac studies have indicated that the gas resources in the Permian Toolachee and Patchawarra formations can be commercially developed.”

“The prospective OGIP resources for ATP927P have been effectively increased by more than 141 percent to 13.761 Tcf (or 13,761 Bcf) from pre-drilled estimates of 5.7 Tcf. The independently certified recoverable prospective gas resources of 5.48 Tcf are very significant gas resources for a company of Real Energy’s size, and our focus remains on transforming ATP927P into a Tier-1 gas project in the Cooper Basin.”

“We will continue to update shareholders as our development activities continue to progress.”



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