DRILLING

Amity sets Whicher Range spud date

Amity Oil is ready to divert its attention from Turkey momentarily in order to spud the much-anti...

The JV partners have signed on drilling contractor Oil Drilling and Exploration (OD&E) to import their Rig 28 from Indonesia with an estimated spud date around the 10th September.

At 1,500 HP, Amity said Rig 28 is more powerful than any presently available in Australia and is equipped with Top-Drive and 10,000 psi Blowout-Preventers, ideal for drilling the 4,300m deep Whicher Range-5 well. Amity said using the imported rig would not blow out the well's $6.8 million budget.

The Whicher Range Gas Field is an undeveloped tight gas field, located onshore, 22km south of Busselton in Western Australia. The field has estimated gas in place of four trillion cubic feet in Permian age sandstone reservoirs.

The area was first drilled - in a search for oil - in 1968 by Union Oil. The next attempt - this time for gas - was in 1980 by MESA which later became part of the Western Mining group.

The favourable location of the field, about 35km southwest of the southern end of the main gas pipeline from the North-West Shelf, means it can compete on price and transport tariff with gas from the North-West-Shelf.

Much has been learned from the existing wells in the Range about drilling, completion and reservoir stimulation practices. Water is particularly damaging to the reservoirs.

In 1999, Amity successfully increased gas flow in the Whicher Range-4 well, from about one million cubic feet per day to about 3 million cubic feet per day, with a pilot liquid carbon dioxide frac (fracture stimulation operation).

This was the first frac to increase gas flow. All 12 previous fracs used water and as a result, decreased gas flow due to reservoir damage.

The Whicher Range-5 well gas reservoirs will be drilled under-balanced, with air to avoid reservoir damage and to attempt to obtain commercial gas flow rates (greater than 5 million cubic feet per day) without reservoir stimulation. If reservoir stimulation is required, a full scale liquid carbon dioxide frac will be applied.

The JV partners include Amity 47.957% (operator), Korea National Oil Corporation 20% Seoul City Gas Company 15 % and Geopetro Resources Company 17.043%.

Amity's share price continued its climb, reaching $1.21 in morning trade.

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