TSV Inching Towards Natural Order at Warro
Transerv Energy (ASX:TSV) continues to see improved operating conditions at both its wells in the onshore Perth Basin after maintenance work was sucessfully completed last week. TSV has now moved quickly to resume testing operations on both its Warro -5 and Warro -6 wells.
In a statement to the market, TSV said its Warro-6 well is “flowing gas naturally while Warro-5 continues to clean up with the aid of a jet pump”.
Warro is Australia’s biggest undeveloped onshore gas field, with a total estimated Resource of 11.6 trillion cubic feet of gas initially in place. The P90 Resource which accounts for just half of the total Resource is estimated to be worth around $1.8 billion.
The current well testing programme is being funded by Alcoa as part of TSV’s Warro project farm-in arrangement with the programme expected to continue for 3-6 months.
While larger onshore plays exist in Australia’s north and north-west, the Perth Basin has the advantage of being close to the robust south-west WA gas market.
“At Warro-6, during the shut-in period, the wellhead pressure (WHP) built to 2700 psi and as a result, the decision was taken to remove the jet pump and allow the well to flow naturally,” says TSV.
“Flowing a first flush of gas at rates over 4 mmcfd in the first 24 hours, the gas rate stabilised at 0.73mmcfd and has since been steadily increasing to the present rate of 0.85 mmcfd. Importantly, accompanying water rates are decreasing (presently averaging 425 bwpd down from 600 bwpd at the beginning of the stabilised natural flow period) while flowing WHP has remained constant at 325psi.”
At Warro-5, gas rates have averaged 0.75 mmcfd over the last 24 hours, significantly better than last week’s average of 0.6mmcfd. TSV also said that liquid rates have continued to decrease – yet another positive sign for Warro-5.
“The performance of Warro-5 is very similar to Warro-6, suggesting that it too will be capable of natural flow in the near future” said TSV. “For Warro-5, the tracers indicate that over 70% of the liquids and 54% of the gas have come from Stage 2. This suggests that Stage 1 is potentially still cleaning up.”
TSV Managing Director Stephen Keenihan said, “While it is still very early days in this testing programme, these well results are encouraging. The fact that sustainable natural flow has been established at Warro-6, and indications that Warro-5 will follow soon, show the wells are capable of producing significant quantities of gas unaided”. “The trends are in the right direction,” he added.
“The tracer information suggests we are not seeing the true potential of all zones and we can hope that as testing proceeds, stages 1 and 3 in Warro 6 will contribute more gas. From a geological viewpoint, Stage 2 in Warro-5 is equivalent to Stage 3 in Warro 6 underlining that Stage 3 in Warro-6 has more potential.
“As previously indicated, the stimulation work carried out at Warro-5 and 6 only targeted approximately 50% of the net pay identified in each well, signifying the current programme is not evaluating the full potential of the reservoir section.”
S3 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.
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. No “insider information” is ever sourced, disclosed or used by S3 Consortium.