IVZ 1.47% 6.7¢ invictus energy ltd

If there is a sales gas contract in place, companies have found...

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    If there is a sales gas contract in place, companies have found it necessary to find an alternative to produced gas reinjection by injecting either nitrogen or CO2 to maintain the reservoir pressure above the dew point. Produced water reinjection is another possibility, but with water the injectivity tends to fall off over time due to fines migration (small particles and clays within the rock pore space dislodge and tend to block the injection process).

    The other factor to keep in mind is that the data so far indicates a condensate to gas ratio (CGR) of about 130 STB/mmscf reducing to about 30 STB/mmscf deeper down. So, if the average CGR is only 60 - 80 STB/mmscf, then I think it is unlikely it will be uneconomic to recycle the produced gas even when there is an abundance of gas. They would need to generate production forecasts and perform economic valuations for a range of scenarios, but generally it is only economic to recycle the gas when the CGR is well above 100 STB/mmscf.
 
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