The company – which has so far participated in three successful gas wells in the basin – announced today that it would now be entitled to its first gas revenues after gas started flowing to the main collection and processing network from the Smegsy-1 discovery tie-in line.
Enterprise, which has a 25% interest in the Smegsy-1 production well, said sale proceeds would supplement a small revenue stream from minority producing oil interests in Queensland. Well operator Great Artesian Oil and Gas holds the remaining 75% interest in Smegsy-1.
“The Smegsy flow heralds our emergence as a producer while helping underpin our cashflow position as we continue to pursue our exploration strategies and assess potential new acquisitions,” managing director Warren Leslie said.
“Our focus remains strongly on the Cooper Basin as the current energy prices provide a unique medium-term window of opportunity to bring onstream some of the smaller gas and oil traps not previously considered commercial in this province.”
Leslie said Smegsy-1 was currently being assessed to determine optimal flow rates, after which time the company would be in a better position to firm up its revenue profile from the well.
Smegsy-1 is currently flowing between 4 million and 5 million cubic feet of gas per day from one of the intervals in the lower Patchawarra Formation. Associated condensate is expected to be about 120 to 150 barrels per day.
Enterprise’s other exploration successes to date, and which await development, include a 12.5% interest in the PEL-106 Rossco-1 gas discovery well, not yet tested but cased and suspended. The well, which is five kilometres north of Smegsy-1, has several interpreted hydrocarbon bearing zones. Other interests in this well are held by Great Artesian (operator, 50%) and Energy Investments (37.5%).
The company has a similar 12.5% interest in the PEL-106/PEL-91 Udacha-1 gas discovery well, 10 kilometres west of Smegsy and 17 kilometres east of the Sellicks oil field. Enterprise said the well had potential to flow at a much higher rate than its test rate of 441,000 cubic feet of gas per day.
The gas flow in Udacha-1 - on the border of PEL-106 and PEL-91 - was recorded from a single zone and other untested zones exist in the well.
In another joint venture, Enterprise Energy will soon participate as a 10% owner in the testing of the potential Fairbridge-1 oil well in PEL-100, northeast of Moomba.
The well, spudded late in December last year, is currently cased and suspended as it waits for a work-over rig to equip and perforate the well for testing.
