Beetaloo Energy managing director Alex Underwood said: โThe stimulation of Carpentaria-5H is an historic moment in the development of the Beetaloo Basin. This is the first well in the basin targeting a stimulation across a 3km horizontal section.โ
Underwood said horizontal drilling and hydraulic stimulation revolutionised the United Statesโ energy system, driving down energy prices and emissions intensity while stimulating economic activity. Australia has the same opportunity through the development of the Beetaloo Basin, he said.
When the stimulation program finishes, Beetaloo will undertake a 30-day clean-up and soak, followed by a 30-day production test to check the flow rate levels. The company anticipates the release of IP30 flow rates within the next three months.
The 3.31km horizontal well sits at an average depth of 1580 metres below ground within a 70m-thick B shale reservoir.
The planned stimulation of more than 60 stages will use the standard plug and perf technique.
Commonly used in shale formations, the technique involves setting temporary bridge plugs at specific intervals within a wellbore to isolate and treat different zones sequentially.
After setting the plug, perforating guns are used to create openings in the well casing and surrounding formation. The perforations allow the hydraulic stimulation fluid to be pumped in to fracture the rock.
Following successful hydraulic stimulation and production flow testing, the company plans to construct the Carpentaria pilot project. The project will determine a long-term production curve to support future development planning.
When the well has been stimulated, it will be shut in and tied into the Carpentaria gas plant for production. Beetaloo will then seek the regulatory nod for gas sales under the NTโs beneficial use of test gas rules.
Management plans to eventually draw sufficient gas from the basin to supply the NT government with as much as 100 terajoules of gas per day.
Beetaloo holds a commanding 117,000 square kilometres of prospective exploration tenements in the NTโs McArthur Basin and Beetaloo sub-basins. Both basins offer enormous hydrocarbon potential.
The company remains stacked with funds, highlighting its cash at bank is a healthy $40.5 million. It follows the company raising a handy $28 million in May to bolster its Beetaloo Basin exploration plans.
Beetaloo also retains access to $28.8 million in undrawn Macquarie Bank facilities.
Boosted by continual funding, its large cash holding and a world-class gas region, Beetaloo has come far. Test flow results expected in the next few months should provide a guide to just how far Carpentaria has come along the path to success.
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