MAY melbana energy limited

I’ve told my mate the following since our last chat. [ATTACH]...

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    I’ve told my mate the following since our last chat.
    upload_2025-4-15_21-29-42.png






    Key Findings from the Report



    1. Post-Workover Flow Rate:
      • Pre-workover: 293 BOPD (natural flow).
      • Post-workover: 488 BOPD (with artificial lift using a progressive cavity pump).
      • Increase: ~66% increase in oil flow rate.
    2. Initial Production Context:
      • Unit 1B had previously flowed at 1,235 BOPD in test conditions, indicating strong potential when undamaged.
      • The substantial fall to 293 BOPD had been attributed to formation damage caused by shut-in fluids and possibly the original drilling fluid.
    3. Remedial Work Details:
      • Perforated both upper and lower Unit 1B intervals.
      • Conducted acid wash and squeeze, and a second acid job was also done after installing the PCP.
      • Flowed through multiple choke sizes, peaking at 4,167 BPD of total fluid during surging (short duration).
      • Final average test: 488 BOPD + 7 BPD water over 12 hours at 7 PSI flowing pressure.
    4. Cleanup Complications:
      • Heavy-weight brine and spent acid had to be lifted using a pump, as natural flow was insufficient.
      • CO₂ presence during flowback indicated acid reaction with carbonate rock but may have also reduced flow efficiency until fully cleaned up.
    5. Formation Damage Confirmation:
      • CT imaging revealed barite embedment and precipitate blockage, consistent with formation damage due to drilling and completion fluids.
      • Future wells will use a non-damaging Reservoir Drilling Fluid (RDF).
    6. Infrastructure Limitations:
      • No coiled tubing unit or nitrogen lift available—likely reduced stimulation efficiency and clean-up effectiveness.
      • Acid stimulation via service rig was a compromise, and nitrogen lift could have improved outcomes.





      Revised Assessment




      Production Outlook:


      • The post-acid average of 488 BOPD is significantly below the theoretical potential (1,200+ BOPD seen previously), indicating:
        • Partial success of acid stimulation.
        • Remaining formation damage or incomplete cleanup still restricting flow.
        • Acid not penetrating deeply enough or wormholes not effectively intersecting key fracture networks.



        Reasons for Modest Result:


        • Lack of nitrogen lift and CTU likely limited acid placement and recovery.
        • Formation heterogeneity and residual brine likely still impairing near-wellbore permeability.
        • The fractured nature of Unit 1B suggests stimulation success is strongly geometry-dependent (i.e., intersecting live fractures).



        What This Tells Us About Future Completions:


        • Acid work alone, especially without CTU and nitrogen, may not achieve full potential in these conditions.
        • Reservoir has good oil (19° API, low water cut), and real upside remains, but:
          • Execution methods matter—mechanically optimized acid delivery and flowback systems are critical.
          • Future completions should be tailored with RDF, CTU, and possibly multi-stage stimulation.





          Summary & Forward Look


          Item

          Value

          Initial post-acid flow (natural)

          ~293 BOPD

          Post-workover flow (with PCP)

          488 BOPD (+66%)

          Peak total fluid (surged)

          4,167 BPD

          Likely production stabilisation

          400–500 BOPD (short-term), gradual increase if full cleanup continues

          Optimisation potential

          High if CTU/nitrogen used in future

          Conclusion: While the acid wash improved output, the results were constrained by equipment limitations and possible persistent formation damage. Future wells (like Amistad-2) that integrate RDF, better fluid compatibility, and proper stimulation equipment have significantly higher potential to reach the 1,000+ BOPD range again.


          Let me know if you’d like to model forecast production profiles based on different stimulation and cleanup scenarios.
    Then advised the following
    differences with AM 2 and Am 3.
    upload_2025-4-15_21-28-27.jpeg
    this is what GPT reckons


    Got it—this changes the outlook quite a bit. With that new context, here’s an updated take on what to expect from the next two production wells (Amistad-2 and Amistad-3):







    Key Differentiators from Alameda-2:



    Factor Alameda-2 (Workover) Amistad-2/3 (Production Wells)

    Well Type Appraisal, with remedial acid work Purpose-built production

    Net Pay Accessed ~200m perforated ~500m open hole (2.5x more)

    Fracture Intensity Moderate High – 250% more fractured net pay

    Formation Damage High – damaged by shut-in and drilling mud Minimal – RDF-designed to avoid damage

    Stimulation Acid wash (no CTU/nitrogen) Likely no acid, but better placement via open hole

    Flowback Equipment PCP post-factum Likely better-planned cleanup from the start

    Structure Location Down-dip 200m up-dip (higher pressure head)











    Production Outlook:



    Let’s work through a qualitative and quantitative estimate:



    1. Net Pay and Fracture Exposure Factor:

    • Net pay exposure is 2.5x greater.

    • Fracture density is also 2.5x greater.

    • Combined, this could theoretically enhance deliverability by a factor of 4x to 6x, assuming other conditions (pressure, saturation) are favorable.



    2. Up-dip Advantage:

    • 200m higher in structure means potentially higher reservoir pressure and possibly better oil mobility.

    • Could contribute another 10–20% flow increase conservatively.



    3. No Formation Damage:

    • Use of Melbana RDF should maintain permeability near wellbore.

    • Avoids mud invasion and barite embedment seen in Alameda-2.



    4. Completion Type:

    • Open hole completions will allow full exposure of fractures and flow paths.

    • No risk of cement sheath, liner perforation inefficiencies, or under-performing stimulations.







    Estimated Flow Rates:



    Assuming Alameda-2’s true undamaged potential is around 1,200 BOPD, and adjusting for:

    • 2.5x more net pay

    • 2.5x more fractures

    • 1.1–1.2x up-dip pressure benefit

    • Clean drilling with RDF

    • No stimulation inefficiencies



    You could expect a realistic initial production range of:



    \text{Estimated IP Rate} \approx 1,200 \times 4 \text{ to } 6 = \boxed{4,800 \text{ to } 7,200 BOPD}

    • Lower bound if fracture networks aren’t fully productive or RDF only partially prevents damage.

    • Upper bound if fracture flow is strong and net pay is fully productive.

    • Add ~5–10% for up-dip pressure and better cleanup from open hole.







    Conclusion:



    These next two wells are set up for success:

    • Cleanest possible drilling conditions (RDF).

    • Maximum reservoir access (500m net pay).

    • Strong fracture connectivity (250% increase).

    • Higher structural position (up-dip).

    • Immediate production post-cleanup = early cash flow.



    Expected IP: ~5,000–7,000 BOPD.

    High confidence in achieving >3,000 BOPD, even in moderate outcomes.



    Let me know if you’d like a decline curve forecast or breakeven modelling for these wells.
 
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