Elixir Energy (ASX:EXR) Lorelle 3H flow testing progresses following clean up phase
Elixir Energy has provided an operational update on the Lorelle 3H appraisal well in ATP2056 within Queensland's Taroom Trough, reporting completion of the initial clean up phase and the planned installation of tubing before production testing recommences.
Highlights
Lorelle 3H has recovered approximately 32% of the injected stimulation fluids during the initial clean up phase.
During the clean up phase, the well remained in sustained dual phase production, with water rates of up to 1,700 bbls/d and gas rates of up to approximately 3 mmscfd observed.
Field measurements confirmed gas containing 1% or less CO₂ and 0% H₂S, with gas and condensate samples collected and sent to the laboratory for compositional analysis.
A 2 3/8 inch tubing string will be installed before production testing recommences.
Elixir reported that the Lorelle 3H well has safely produced back approximately 32% of the injected stimulation fluids, which it said was high when compared with offset data and indicated good connectivity with the reservoir.
During the clean up phase, the well remained in sustained dual phase production, producing back both stimulation fluids and gas/condensate up the 4 1/2 inch casing.
The company also reported that zero sand or proppant production had been observed, which it said indicates the fracture stimulation network remains in place.
Field measurements confirmed gas containing 1% or less CO₂ and 0% H₂S. Water rates of up to 1,700 bbls/d and gas rates of up to approximately 3 mmscfd were observed while the well was on a 24/64 choke, with flowing well head pressures of approximately 750 psi to 1,500 psi.
The company stated these rates were measured during unstable flow and surges as different stimulation zones of the well entered gas/condensate production whilst others remained in fluid flow back.
Gas and condensate samples have been collected and sent to the laboratory for compositional analysis.
The company stated that surging of gas and fluid as production has been ramped up necessitates the running of the planned and preprepared 2 3/8 inch tubing string.
According to Elixir, this is intended to pacify the surging, allow the well to be opened up past the current choke setting and move into a uniform single phase flow.
The well has been shut in while this work is undertaken, with installation of the tubing string envisaged to take up to 7 days before production testing recommences.
Lorelle 3 was drilled in two phases, with the pilot hole reaching a total vertical depth of 3,580 m and collecting core and logs across the various Permian sandstone reservoirs within the Taroom Trough.
Elixir reported that the petrophysical results were above expectations and demonstrate multiple thick gas and gas/condensate bearing reservoirs as viable appraisal targets amongst the 148 m of measured net gas/condensate pay.
The second phase included a 1,157 m horizontal sidetrack into the Tinowon Dunk Sandstone, which has been cased and stimulated across 12 stages for production testing.
The company stated that the Tinowon Dunk Sandstone horizontal and flow test is designed to demonstrate commercial flow rates of gas and condensate from the Basin Centred Gas Play and then lead into a possible maiden Reserve conversion of the underlying Contingent Resource.
It also stated that the objectives of the flow test include measuring gas and condensate ratios and compositions, together with pressures, temperatures and other key flowing conditions, to support the preparatory work required for development.
According to the company, the immediate forward program is to complete installation of the 2 3/8 inch tubing string, recommence production testing and open the well looking to achieve its maximum gas and condensate production rate.