Greens Canyon Natural Gas
Sydney, Nov 4, 2005 AEST (ABN Newswire) - Samson Oil and Gas (ASX: SSN) report gas flow exceeds expectations.
The fracture stimulation of the Frontier Sandstone in the Greens Canyon #2 well has been successfully completed. A treatment comprising 3,400 barrels of gelled water placed 215,000 pounds of 20/40 Carbolite proppant. Operationally the treatment proceeded precisely as planned. The well has been flowed back over the past 24 hours and is about to be turned into the existing sales line. The well flow rate prior to this was 1,200 mcfpd, calculated from a flowing pressure of 1575 psig on a 14/64 inch choke.
The rate has exceeded the design expectation, and calculations based on the pressures observed during the treatment have determined an increase in the expected permeability. The flow rate has materially established that the Frontier and by extrapolation the Muddy Sandstone can be produced at economic rates from within the Greens Canyon Field. Whilst this had been determined from technical data, operational difficulties with the previous stimulations had meant that this rate had to be demonstrated in a practical sense.
The next step in the development of the field which has been assessed to have a recoverable potential of 74 Bcf will be to drill the Sue Federal well. Planning and the sourcing of a suitable rig can now commence given the successful outcome of Greens Canyon #2.
Based on early November cash prices in this region, it is expected the sales gas stream will attract a price into the Duke Energy transmission system of around US$7.50 per mcf. Sproule and Associates in their July 1 2005 reserve report had determined that a proved undeveloped reserve per well of 3.5 Bcf, Initial flow rate indications are in line with the assumptions used to determine this reserve.
Contact
Tel: (+618) 9220 9830
Fax: (+618) 9220 9820
Email: contact@samsonoilandgas.com.au
Web : www.samsonoilandgas.com.au
ASX Code: SSN
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