Armour Energy Ltd., Brisbane, plans to re-stimulate the Warroon-1 well in its Surat basin acreage in Queensland in October to supply additional gas into the Kincora gas gathering system for processing and sale via the Kincora gas plant.
Armour originally stimulated the well in November 2020 but failed due to a gel problem.
The Rewan sandstone target reservoir directly underlies the Showgrounds sandstone—the original target for the Warroon wildcat drilled in 1979 by Hematite Petroleum (the former oil and gas arm of BHP). It not been on production previously.
Hematite ran a drill stem test in the Showgrounds resulting in a flow of 8.1 MMcfd of gas. The well was completed in the Showgrounds and went on to produce 3.5 bcf of gas, 95,500 bbl of condensate, and 6.950 tonnes of LPG from the reservoir.
Hematite tested the Rewan with a resultant flow of 150,000 cu ft/d of gas, but the company deemed the reservoir too tight for commercial production.
More recently, Armour’s petrophysical analysis indicated a porous zone throughout the upper Rewan sand interval. The company ran a work program in 2020 targeting a single-stage fracture stimulation in the gas-saturated Rewan section, but the gel in the frac failed to break down following proppant placement, which impacted matrix flow and resulted in a low-side outcome.
Armour has secured private investors to fund 100% of a new fracturing program expected to cost $700,000 (Aus.) and begin in mid-October. Investors will receive 50% of the incremental revenue produced above the current well production profile less costs for a period of 6 years. Armour will retain the remaining income.
If successful, the incremental production from Warroon-1 will be directed to the overall Kincora system in the Surat.
Armour’s chief executive officer, Brad Lingo, said the new program could pave the way for further opportunities for partnering to fund value-adding work programs and enhance production.