Oil and gas producer Empire Oil and Gas reported Friday that completion and testing plans for Empire’s recent gas discovery at its 100 percent owned Red Gully North-1 exploration well (RGN-1) in EP 389 in Western Australia’s Perth Basin are progressing to plan with all service contracts in place, government approvals submitted and long lead equipment received.
After a competitive market process, a contract has been awarded to Enerdrill Pty Ltd. which secures the use of Enerdrill’s Completion Rig-1 and will cover completion activities at RGN-1.
Preparations for the completion and testing program are significantly advanced. The completion equipment has arrived in Perth and is undergoing testing in sub-assemblies prior to running the completion. Land access approvals have been granted and all stakeholders consulted. Empire has also made key submissions to the Western Australian Department of Mines and Petroleum (DMP) including:
Subject to government approvals being received, the completion operations on RGN-1 are expected to begin on March 23 with testing operations expected to start in mid-April. This is in line with the schedule outlined Dec. 29, 2015 when Empire first announced the 174 foot (53 meter) net pay RGN-1 gas discovery.
The testing objectives include determining the deliverability of gas and condensate and recovering hydrocarbon samples from each zone. A successful production test will allow significant contingent resources to be converted to reserves, thereby commercially justifying an ultimate investment decision to construct a pipeline tie-back to the Red Gully processing plant. A tie-back of RGN-1 to the Red Gully plant will support an extension of plant life or the expansion of production capacity.
Empire CEO Ken Aitken said “Empire is pleased to extend our relationship with Enerdrill for completion rig services after their good performance on the drilling of Red Gully North-1 last year. Good progress has been made on the planning and we look forward to a safe and efficient completion and testing program.”
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