Ann: Welchau-1 Well Discovers Condensate Rich Gas, page-230

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VatreniHR

2,290 Posts.

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20/03/24

15:34

Post #: 72979214
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Originally posted by plough: ↑

'Im not sure what the cost will be for the drill rig to flow test? Assuming lets say another $17Mill,the cost for ADX is shy of AUD $13Mill

I would have thought it would not cost as much second time around , as they will have the drill casing already in , just need to perforate the casing and it would almost be just a demurrage type fee with the rig just there to have its BOP in place , and the ability to use the string to maybe perforate the casing at intervals , and take flow readings over say a week and flame control monitoring . but welcome to be corrected as have only been a distant observer to what happens - and that was 50 years ago ,
Drilling in Europe sure is expensive compared to in the USA it seems .

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The cost for the flow test is considerably less than the initial discovery well. We're not drilling the well again, it will be cased and suspended. The same well will be used for the flow test and if it delivers commercial rates, it will be a future production well.

For example, IVZ's 3400m MK2 discovery well (vs Welchau at 1800m depth) cost approx $35m. The flow test for Mukuyu-2 is projected to cost around $4m according to the MD, and that is in a remote location of Zimbabwe.

We're in Austria where equipment is easily transported and readily available. I'd estimate around $1.5m-2m for the flow test (50% funded by MCF Energy).

Last edited by VatreniHR: 20/03/24

ADX Price at posting: 17.0¢ Sentiment: Buy Disclosure: Held
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