- Lakes Blue Energy (LKO) is getting closer to kicking off a flow test of gas shows in its Wellesley-2 well in Queensland’s Surat Basin region
- The company says it is progressing the well, having run a second logging suite from the total depth upwards to a casing shoe, with the Gamm Ray run to the surface
- Lakes Blue spudded the well last week and has since been working seven days a week on the well, with daily updates provided to investors
- Work over the next 24 hours will involve pressure testing surface equipment, setting the DST string across the test interval, and then opening the tools to conduct the flow test
- Shares in Lakes Blue were trading flat this morning to 0.2 cents each
Lakes Blue Energy (LKO) is getting closer to kicking off a flow test of gas shows in its Wellesley-2 well in Queensland’s Surat Basin region.
The company this morning said it was continuing to progress the well, having run a second logging suite from the total depth upwards to a casing shoe, with the Gamm Ray run to the surface.
Lakes Blue also removed the logging tools from the hole, with a wireline logging unit now rigged down. Drill Stem Test (DST) tools were made up and run into the hole as the company prepares for straddle testing of the interval containing Boxvale Sands, which is between 1514 metres and 1533 metres deep.
Lakes Blue spudded the Wellesley-2 well on Thursday, February 10. Since then, the company has been working seven days a week on the well, providing daily updates to shareholders on the ongoing work.
The company struck the target Boxvale Formation earlier this week and said while the formation was thinner and finer-grained than anticipated, it encountered natural gas shows of three times the background.
It’s this Boxvale the zone the company plans to flow test.
Lakes Blue said work over the next 24 hours would involve pressure testing surface equipment, setting the DST string across the test interval, and then opening the tools to conduct the flow test.
The Wellesley area has been largely underexplored, according to Lakes Blue, with BHP drilling one hole in the late 1970s that was not deemed to be of commercial interest.
However, given advances in technology and modern production techniques, Lakes Blue said it considered the Wellesley dome to be a “compelling” exploration opportunity.
The Wellesley-2 well lies roughly one kilometre northwest of the original hole drilled by BHP in the 70s.
Shares in Lakes Blue were trading flat this morning to 0.2 cents each. The company has a $43 million market cap.