Transerv's interest in Warro 3 well has value added as well recovers substantial natural gas
Transerv Ltd (ASX:TSV) has advised that the Warro 3 flow testing program is continuing to recover substantial quantities of natural gas and fluids during the well clean up operation.
Transerv holds a 10% interest in the Warro Gas Project in Western Australia and is free carried for the first $40m of project expenditure on the current evaluation program, which includes 2 to 3 wells plus seismic.
This expenditure on the Warro Project evaluation program is being funded by Alcoa of Australia as part of its farm�]in commitments. On completion of all farm�]in expenditure obligations, including construction of production facilities, the project interests held will be Alcoa 65%, Latent Petroleum 25% (Operator) and Transerv 10%.
Warro #3 is an appraisal well to determine the flow rates achievable from the large Warro Gas Field using modern drilling and fraccing technology. The field was originally discovered by WAPET in 1977 through a 2 well drilling program. If the evaluation program is successful, it will confirm the commercial viability of the Warro Gas Field, expected to yield 2�]3 Tcf of recoverable gas for domestic consumption in WA.
The coiled tubing was removed from the well bore on Thursday, as the coil tubing unit was due to be released to another location. Removal of the coiled tubing increases the volume of the well bore, and therefore the volume of water in the well bore, and was expected to cause a significant drop in the gas flow rate and well head pressure.
Upon recommencement of the flow testing on Friday the well flowed gas at an average rate of two million three hundred thousand cubic feet per day (2.3mmcfp/d), with a well head pressure of 240 psi, and the choke opened to 58/64ths. This was a significantly better gas flow than anticipated. Also, the fluid flow rate has declined to 750 barrels per day.
The well was shut in on Saturday for static pressure testing, expected to take a few days, with flow testing to recommence thereafter.
The company said the well has now demonstrated "an ability to flow gas to surface without the assistance of coiled tubing and/or nitrogen lift and that the potential gas flow rate is significantly higher once the recovery of fluids from the reservoir ceases, as this inhibits gas flow." The well performance to date continues to be in line with expectations, albeit the well clean up process continues to take time.
The full Warro 3 flow testing program commenced on May 2 and is expected to take up to 60 days. The Company will continue to provide regular progress updates.
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