Australia's Armour to restimulate Warroon #1 well
Sydney-listed Armour Energy will restimulate the Warroon #1 well located in Australia’s Surat basin, it said on September 23. The activity will start around the middle of October.
“The capital cost of the re-stimulation will be funded 100% by a private entity, consistent with previous guidance that Armour would seek partners to fund production enhancement work programmes,” the company said.
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The Warroon #1 well was drilled by Hematite Petroleum in 1979 targeting the Showgrounds sandstone and produced 8.1mn ft3/day on DST. The well was completed in the Showgrounds sandstone and produced 3.5bn ft3 of gas, 95,500 barrels of condensate and 6,950 metric tons of LPG.
After the clean-up phase, the Warroon #1 well will begin flowing additional gas into the Kincora gas gathering system for processing and sale via the Kincora gas processing plant. It is anticipated that the Warroon #1 stimulation programme and clean-up process will take approximately 10 to 14 days, Armour said.
The private entity will fund 100% of the capital and receive 50% of the incremental revenue produced above the current well production profile less costs for a period of six years, while Armour will retain the remaining income.
"We are excited to see further investment in the field and realise the full potential of the Warroon-1 well. Armour sees further opportunity for partnering to fund value-adding work programs and to enhance production,” Armour's CEO Brad Lingo said.