Archived News
In August 2021 Finfeed changed from a website that covered ASX listed news to a website
that covered a select range of ASX
listed small cap Biotech stocks that we are personally
invested in: find out more.
The old Finfeed website, and all of the old articles are kept here for record keeping purposes.
VISIT NEW SITEReal Energy joint venture gets government go-ahead at Venus
3 minute read
In an extremely important development for Real Energy Corporation (ASX: RLE) the Queensland Government has officially granted title of the Venus Project permit ATP-2051 (previously PLR2019-1-11) to the Strata-X Energy and Real Energy Corporation joint venture (RLE:50%/SXA:50%).
Project Venus is located within the main Walloon coal seam gas (CSG) fairway in the Surat Basin, Queensland.
It is immediately adjacent to gas infrastructure and is prospective for CSG over its entire area of ATP 2051.
A recent independent review of the data within and around the permit certified a Prospective Gas Resource of 658 BCF (694 PJ) gross, 329 BCF (347 PJ) net to Strata-X in the Walloon coal seams in ATP 2051.
Underlining how the joint venture will progress, Real Energy will be the administrative and commercial operator while Strata-X, at least for the initial phase to predictable reserves certification, will be the technical operator.
Aligning with Strata-X appears to be an astute decision by Real Energy as Ron Prefontaine is the executive chairman of the group.
He was the technical director of Arrow Energy and founding managing director of Bow Energy, two ASX-listed CSG companies that were separately taken over in 2010 and 2011, respectively, for a combined total of approximately $4 billion.
Strata-X is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in Queensland, the States of California and Illinois in the United States of America and the Republic of Botswana.
Previous wells suggest high probability of success
As illustrated below, the Venus Project is adjacent to gas infrastructure, and the JV plans to expedite appraisal and conversion of resources to reserves to fast track development.
There are several previously drilled CSG and conventional wells located within and around ATP-2051, including a fully cored well indicating the upper Walloon coal seams are fully gas saturated.
One of the historic wells in the permit, the Connor-1 well, was drilled immediately adjacent to the core hole, then cased and under-reamed (enlarged beyond the regional drilled size), but it was never properly flow-tested.
The Project Venus JV plans to re-enter the Connor-1 well to reservoir-enhance and flow-test the upper Walloon coals.
The re-entry flow-test program is designed to prove sufficient water flows to allow efficient dewatering and early gas flows from the fully gas saturated upper Walloon coal seams.
The Connor-1 re-entry start date will be announced when the contractors and timing are confirmed.
Assuming the Connor-1 re-entry flow-test goes to plan, the Project Venus JV expects to drill two wells offsetting Connor-1 and fully equip the three wells as a production pilot program.
The pilot program will include long term flow-testing of the upper Walloon coals with the objective to prove commercial gas flows rates.
Once commercial gas flow rates are achieved in the pilot program, the Project Venus JV can commence progressively converting the 658 BCF (694 PJ) Prospective Gas Resource to reserves with the goal to fast track development of the project, thereby offering the potential for early cash flows.
Latest articles on Real Energy
More Commentary
Vulcan gathers highly-credentialed team to complete DFS
05-07-2021
IVZ sets July as start date for Seismic campaign
25-06-2021
Post-drilling analysis delivers positive results for 88 Energy
25-06-2021
Elixir intersects 50 metres of coal at Yangir-1
23-06-2021S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
Publishers Notice
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain.