Empire Conducts Successful Red Gully-1 B Sands Gas Condensate Test in WA

Empire Oil & Gas NL as operator of the EP 389 Joint Venture reported Friday that the Red Gully-1 B Sand Perforation and Well Test Program (Red Gully-1 Well Program) in Perth Basin, Western Australia has resulted in the production of gas condensate to surface.

The Red Gully-1 Well Program, which involved the perforation and testing of the Cattamarra Formation B Sands is expected to be completed over this coming weekend. The Red Gully-1 well head (xmas tree) was replaced and a gauge run completed on the Gingin West-1 well to gather down-hole pressure information and the planned maintenance shutdown on the Red Gully Facility was completed.

A total of 78 feet (24 meters) of the B Sand formation was perforated over 5 zones and initial flow-testing has indicated initial flow rates of 9.9 million cubic feet per day (or approximately 11.5 terajoules per day) on a 32/64 inch choke at a flowing well head pressure of 2,106 psi with initial condensate flows of 595 barrels per day, which equates to a condensate yield of approximately 60 barrels per one million cubic feet of gas.

Initial gas testing indicates that the gas is of a similar quality to the Red Gully-1 D Sands. Samples of the gas and condensate have been collected and sent for laboratory analysis to determine their export compatibility under the current sales agreements. Information collected by the various testing equipment will be downloaded and analyzed over the coming weeks.

The contractor, Expro Group will de-mobilize its personnel and equipment from the Red Gully site this weekend and production through the Red Gully Facility is scheduled to resume early next week.

Further flow-testing, via production through the facility and analysis of the results of the Red Gully Well Program and data collected from the gauge run on the Gingin West-1 well will take place over coming weeks. The data collected during the test program and this production flow-testing will form the basis of an updated reservoir development plan for Red Gully and will focus on both the optimal and sustained continuous production rates to maximize reservoir recovery in the B Sands.

This work will also form the basis for a review of the recoverable reserve estimates for the B Sands and the Gingin West-1 well.


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