Nexus Energy Limited announced that its Longtom-4 development well in Production License VIC/L29, in the Gippsland Basin, offshore Victoria, was setting 16 inch casing having reached 755 meters measured depth relative to rotary table (MDRT) in a deviated pilot hole.
The Longtom-4 well spudded on June 21, 2008 and is expected to take approximately seven weeks to drill the pilot hole and then complete the horizontal production section of the well. The horizontal section will be drilled to intersect the two deepest sands within the Longtom field, as indicated on the schematic cross section below. The West Triton jackup rig is drilling the development well.
Longtom-4 is the second development well for the Longtom gas project. The Longtom-3 well, drilled during the third quarter of 2006, is ready for commercial production with no further rig intervention required. The flow capacity of Longtom-3 alone is expected to be sufficient to supply the anticipated maximum contract rate requirements for the Longtom field. Timing of a planned third development well will depend on the results of Longtom-4 and the field’s production performance over time. The current plan assumes this well will be drilled two to three years after project start-up.
Gas produced from the Longtom wells will enter a new 12 inch pipeline and will be transported from the field to the end of Santos’ existing Patricia-Baleen pipeline, 19 kilometers away. Nexus will construct this pipeline and the associated control lines and equipment. The raw gas will then continue along the Patricia-Baleen pipeline to shore where it will be processed at Santos’ existing onshore gas plant. Santos will install new equipment at the plant capable of processing the Longtom gas. This will primarily involve facilities for the stripping of condensate from the gas and the subsequent stabilization, storage and export of the condensate.
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