Real Energy Provides Investors’ Presentation On Windorah Gas Project Located In Prolific Cooper Basin

Oil and Gas Exploration company, Real Energy Corporation Limited (ASX:RLE) today released an Investor Presentation on Windorah Gas Project, where the company is developing a significant gas field.

Windorah Gas Project is located on the cooper basin, which is Australia’s prime onshore producing petroleum basin. RLE operates two large permits in Queensland – ATP 927P & ATP1194PA.

Tamarama 1, 2 & 3 (Source: Company’s Announcement)

As per the presentation, ATP 927 is in the Permo-Triassic Cooper Basin in SW. It hosts gas on structural trends in adjacent areas, where discoveries had been accomplished. Tamarama–1 and Queenscliff–1 had been drilled and tested by RLE and both wells were drilled at a location independent of structural closure, as per the company’s information.

Tamarama 1

In Tamarama 1, completion strategy and intervals for DFITs were reportedly determined through Initial stress profile, petrophysics and rock-typing. Also, RLE noticed strike-slip stress state in sands/shales and normal and lowered stress state in coals through DFIT data, borehole breakout and DITF. Moreover, five (5) frac stages were effectively targeted in the Patchawarra and Toolachee Fms.

RLE observed high tortuosity and screenout conditions in all intervals except top interval stage, which indicated growth into the Toolachee coal. Also, the well effectively flowed back load fluid then begin producing water after frac communication with the Toolachee coal.

Tamarama 2

Synthetic Log Construction (Source: Company’s Announcement)

According to the presentation, RLE incorporated Synthetic Log Construction for Tamarama 2 and results indicated adjustments would be required to pre-frac estimates to match early job data. RLE also noticed good correlation in early job data with a region of good data control. However, fracture height growth into an area with low data has been reported as a limitation.

Tamarama 3

Stress Test (Source: Company’s Announcement)

On the basis of Tamarama 1, the company used initial stress profile, petrophysics and rock-typing to develop completion strategy and determine intervals regarding DFITs for Tamarama 3, which confirmed stress profile, reportedly. Also, DFIT intervals were chosen with varying modulus in rathole to history-match tectonic strains for stress profile.

Results Obtained by the company:

RLE observed up to a 2.5-fold increase in test rates between Tamarama 1 and Tamarama 2 and 3. The company stated that 50% of the jobs on Tamarama 3 and all jobs on Tamarama 2 exhibited lower NWBPL than Tamarama 1. RLE witnessed a general trend across the three wells that NWBPL increases with higher stress values as demonstrated by ISIP gradients. Also, the results confirm past observations regarding the significance of NWBPL in the placement of Cooper Basin fracs.

NWBPL Reduction (Source: Company’s Announcement)

Forward Plan:

RLE intends to increase overall fracture surface area, and it also asserted to align the wellbore within 30° to the s_HMax direction and incline at a workable angle to the coals to allow more smoothly transitioning, acutely aligned fractures to the wellbore. Also, it expects to employ an alternative open hole completion strategy that provides isolation but aid fracture initiation to counter difficulties experienced in other cases, attempting multiple transverse fractures in cased and cemented horizontal wells in the deep Cooper Basin. Lastly, RLE expects to continue vertical or deviated wells with increased, smaller and high focused fractures.

Improve Well Orientation (Source: Company’s Announcement)

At around 12:38 PM AEST on 30 May 2019, RLE stock is trading at $0.057, up 1.78%. The market capitalisation of the company stands at ~A$19.57 million, with ~349.42 million shares outstanding.

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