- Real Energy Corporation (RLE) will soon begin drilling at the Venus 1 well site which is part of Project Venus in Queensland
- The company will drill the vertical well to a planned depth of 680 metres
- Once the well has been drilled, Real Energy will start a reservoir enhancement program
- This will set up the well as the first pilot production well for long term production testing
- Real Energy is targeting commercial gas flows and potential secure gas sales agreements
- Company shares are trading 7.69 per cent higher for 2.8 cents
Real Energy Corporation (RLE) will soon begin drilling at the Venus 1 well site which is part of its Venus Project in Queensland.
Spudding was delayed due to wet conditions in Queensland which caused the mobilisation of the Silver City rig to be postponed. Nevertheless, drilling is expected to occur in the next few days.
Last week, the east coast gas company began preparing for this program which involves drilling a new vertical well to a planned depth of 680 metres.
Once the total depth is reached, RLE plans to case and suspend the well, then demobilise the rig.
A coil tubing will then be mobilised and used to run a reservoir enhancement program. Following this, the well will be set up as the first pilot production well for a drawdown production test which will continue into 2021.
The production testing is aimed at confirming initial gas breakout and increasing gas flows over the drawdown period as required. This will help to model and predict future gas flow rates and potential commercial gas flow rates.
If commercial flow rates are achieved, Real Energy will conduct an appraisal program to confirm sufficient reserves for the Project Venus joint venture and potentially secure gas sales agreements.
Project Venus covers 154 square kilometres and is located within the Surat Basin. The project is part of a 50:50 joint venture with Strata-X.
As announced in July this year, Strata-X and Real Energy agreed to merge and rename the merged company to ‘Pure Energy’.
Company shares are trading 7.69 per cent higher for 2.8 cents at 3:01 pm AEDT.