Innamincka Petroleum has released an operational update for Flax 1. Production startup from Flax 1 remains on schedule for late July. Well completion and fracture stimulation activities have commenced with the Ensign Rig 5 service rig mobilized onto the Flax 5 lease. While construction activity was severely impacted for several weeks by the heavy rains in mid June, solid progress has since been made.
As advised in mid June, Innamincka Petroleum anticipates oil production to commence from the Flax field in July, initially from the Flax 1 well followed by Flax 3, Flax 4 and Flax 2. The field compressor is scheduled for mobilization to the field in August. The commencement of gas injection will depend on initial reservoir performance. Starting in July, Flax 5, 6 and 7 and Flax East 1 will be fracture stimulated. These wells will be progressively tied into the field facilities as production wells. Innamincka Petroleum continues to target 1000 bopd production from the well pattern.
Civil works associated with the Flax processing facility are largely complete. The oil storage tanks have been installed and the load-out facilities for road tanker loading are constructed. The concrete base for the compressor has been laid and the compressor will be ready for transport to the field and installation in August.
The concrete base for the associated filter/coalescer will be laid in the coming week. Installation of the test / production header and ancillary pipework around the processing facility is complete, as shown on the photos below, and is being readied for xray scanning and hydrotesting.
Tie-in of Flax 2, 3 and 4 wells will commence before the end of July with production from these wells expected progressively through August. Orders of the flowline materials for the Flax 5-7 and Flax East 1 wells have been placed.
The Ensign Rig 5 has mobilized and rigged up on the Flax 5 well as its first operation to be followed by completion operations on Flax East 1, Flax 6 and Flax 7 in due course.
The Halliburton crew is scheduled to be onsite by early next week to commence the fracture stimulation programs. The well operations will see the completion of the first production well pattern.
Innamincka Petroleum is making significant progress with its initial development to become an oil producer in the third quarter of 2008. Participants in the Flax Project are Innamincka (Operator) with 75% and SCGAU with 25%.
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