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    Australia's Armour to restimulate Warroon #1 well

Summary

The capital cost of the restimulation of the well, located in Australia's Surat basin, will be funded 100% by a private entity.

by: Shardul Sharma

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Complimentary, Asia/Oceania, Security of Supply, Corporate, Exploration & Production, News By Country, Australia

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.

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.