Raven begins critical gas flow testing at Tulainyo
Energy junior, Raven Energy (ASX:REL), has today updated the market on its progress at the Tulainyo Gas Discovery in northern California’s prolific Sacramento Basin.
A gas flow test program is expected to begin within the week. Test equipment is on site, and two tests are planned involving multiple potential conventional sandstone gas reservoirs.
REL, which is capped at A$19.23 million, has a 20 per cent stake in the project via its investment in Gas Fields LLC.
As REL announced previously, the Tulainyo 2-7 well was drilled to the planned total depth of 5,710 feet (1,740 metres). This represented a significant engineering achievement by the Tulainyo joint venture due to the challenging over–pressured geological conditions within the very large anticlinal structure.
Post-well analysis indicates multiple stacked sandstone units, varying as expected in thickness and quality, that are all gas saturated.
A two-stage test program will now be carried out, with perforations into the selected reservoir intervals using Tubing Conveyed Perforating Equipment or TCPs. Testing will commence across a zone lower in the well with perforations across at least three separate sands with varying, interpreted reservoir quality. Once sufficient data has been captured from the first test, a removable bridge plug will be set to isolate the lower test zone, and a second test will be conducted over a shallower, thicker sand package.
Overall, the program is expected to take around one month to complete. REL will release further information to the market once test results are clarified.
Yet REL remains a speculative stock and investors and investors should take a cautious approach to any investment decision made with regard to this stock.
Commenting on the test program, John Begg from Gas Fields said: “Our post-drill analysis indicated potential net gas pay of 56 metres (183 feet) from within a gross reservoir section of up to 118 metres (386 feet). We are now, after extensive engineering work and pre-planning, ready to flow test a representative suite of these sands.
“The goal is to prove these sandstone reservoirs have sufficient quality to support commercial scale flows of natural gas. Gas Fields believes there is an excellent chance of achieving this objective across a two-stage test program,” Begg said.
The Tulainyo Project is situated around 120 kilometres northeast of Sacramento. It is held under leases covering some 40,000 net acres (152 square kilometres), and is positioned just eight kilometres from a major gas transport trunkline that supplies gas from Canada into the expansive Californian domestic market.
California only produces a sixth of its annual gas demand, and is expected to import 98 per cent of its natural gas requirements by 2025.
The Tulainyo JV includes the project operator, California Resources Production Corporation (NYSE:CRC), one of California’s largest oil and gas producers, as well as Cirque Resources LP, a private company based in Denver, Colorado.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
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.