For a bit of background on the new acquisition: Elk has been able to achieve an instant 3,000+ boe/day production rate (effective 1st January 2017) with its 14% acquisition of the Madden field and the Lost Cabin gas processing plants. The 14% interest equates to approximately 20 million standard cubic feet per day (MMSCFD) of sales gas (3,333 boe per day) and 170 tonnes/day of sulphur and 6 MMSCFD of carbon dioxide net to Elk (before royalties). The production is largely from eight very deep wells (25.000’) drilled into the Madison formation, which is one of several gas producing formations making up the Madden field.
The Madison formation is similar to the Bass Strait gas fields in terms of well deliverability and reserves. The length of the Madison Deep Unit is spread over 3 townships (18 miles) and is approximately 3 miles wide. It has produced 1.6 trillion cubic feet (TCF) of Madison reservoir gas to date.
The eight producing wells are drilled near the crest of the Madison formation in the Unit. Each of the eight producing wells is capable of rates well in excess of 30 million standard cubic feet per day (MMSCFD). This has been the case since 1995 when the first two wells were placed on production. The cumulative production in billions of cubic feet (BCF) and history of the producing Madison wells are as follows:
Column 1
Column 2
Column 3
Column 4
0
Well
First Production
Cumulative Production (BCF)
Avge 2016 Prodn Rate (MMSCFD)
1
Big Horn 1-5
Mar-95
268.5
31.8
2
Big Horn 2-3
Mar-95
280.9
35.3
3
Big Horn 4-36
Dec-98
179.3
30.9
4
Big Horn 5-6
Aug-00
193.5
23.1
5
Big Horn 7-34
Sep-02
208.2
35.8
6
Big Horn 8-35
Aug-02
157.5
13.3
7
Big Horn 9-4
Nov-03
194.0
36.3
8
Big Horn 10-5
Nov-09
74.3
28.1
9
Total
1,556.2
234.6
Repeat Performance Part 3 post follows Newblood
ELK Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
