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On Friday afternoon, operator Austral Pacific Energy said testing of the McKee sands – the uppermost of three Eocene-aged intervals under evaluation – had resumed.
The well was producing 1.25 million cubic feet of gas and 40 barrels per day of condensate through a 28/64-inch choke with steady tubing head pressure. As expected, however, it was also flowing formation water about 290 bpd.
Austral chief executive Rick Webber told EnergyReview.net he thought there was little to be gained by opening up the choke and conducting an open-hole test, but “surging” the well to flush out the water at the top of the McKee zone was an option.
Petrophysical data indicated that the bottom zone, the K3E interval, should be quite prospective and could hold a much larger reservoir than the McKee.
“If there is a prize in Cardiff, it’s in the K3E sands,” Webber said.
A rig would be needed to test the K3E interval, as there were still some down hole mechanical problems, including a stuck tubing string, which would have to be overcome before testing could start. But it could be several months before Austral could secure a suitable rig, Webber said.
The original Cardiff-2 well was spudded in late 2004 and the Cardiff-2A sidetrack started in early 2005, but technical problems, formation water and zone isolation problems have plagued the drilling and testing programs.
Austral also said the Brecon 3D seismic survey, over an area containing both the Cheal and Cardiff discoveries, was completed last week. The data processing contract has been awarded to Brisbane-based Velseis.
Processed results from the survey should be available in late July. Interpreted data would be used to optimise bottom-hole locations for the Cheal oil development wells, and to further define and delineate drilling targets in the permit areas at the Miocene-aged Mount Messenger (Cheal) and Eocene-aged Kapuni (Cardiff) levels.
Last year, Cheal produced about 31,000 bbl of oil, giving Austral $NZ1.8 million ($A1.5 million) of revenue.
PEP 38738-01 (Cheal) partners are operator Austral, which holds a 36.5% stake, TAG Oil (30.5%) and Arrowhead Energy (33%).
PEP 38738-02 (Cardiff) partners are operator Austral (25.1%), Genesis Energy (40%), TAG (15.1%) and International Resource Management (19.8%).
