After connecting Greens Canyon-2 to the sales line on November 4, the facilities, which remove the entrained water from the gas stream, failed to cope with the 1.2 million cubic feet per day flow rate at 1575 psi on a 14/64 inch choke, Samson said.

“As a result, the well had to be shut-in, while repairs to the system were undertaken,” managing director Terry Barr said.

“This work was modest and the well has now been returned to producing gas to the sales system.”

Twelve hours after connection, Samson said gas was flowing from the well at 2.7 million cubic feet per day at 2,200 psi on a 14/64 choke.

“The flow rate has materially established that the Frontier and by extrapolation the Muddy Sandstone can be produced at economic rates from within the Greens Canyon field,” Barr said.

“Whilst this had been previously determined from technical data, operational difficulties with the previous stimulations had meant that this rate had to be demonstrated in a practical sense.”

The next step in developing the field, estimated to contain a recoverable potential of 74 billion cubic feet of gas, is to drill the Sue Federal well, Samson said.

Planning and sourcing a suitable drill rig has now started, the company said.

Based on early November cash prices in the region, Samson expects the sales gas stream will attract US$7.50 per mcf.

Samson added that initial flow rates were in line with the Sproule and Associates July reserve report, which forecast a proved undeveloped reserve of 3.5 billion cubic feet of gas per well.