Aurora Oil & Gas Limited (“Aurora”)
(ASX:AUT) is pleased to provide the following update on production at the Sugarloaf Area of Mutual Interest (“AMI”) within the Sugarkane Gas & Condensate Field, Texas.
Sugarloaf AMI (AUT 10% Working Interest)
Luna #1H (10% WI)
The Luna #1H well has been fracture stimulated and has been unloaded to sales, with the temporary well test equipment having now been released.
This well is the second well to be drilled, stimulated and produced on a post farmout basis within the Sugarloaf AMI and Aurora participates in sales on a post farm out WI basis of ten percent (10%).
The well was stimulated with 14 stages across approximately 5,000 ft of horizontal section. The well commenced flow back on the 16th November 2010 and was gradually unloaded to sales.
As reported last in the previous Sugarloaf announcement, our wells continue to be flowed with highly restricted chokes. This methodology, which has been applied to the Luna #1H well, has
been designed to limit draw down on the reservoir in order to improve decline curves and Estimated Ultimate Recoveries (“EUR”). In addition, due to the number of additional wells now on production and the forward plan into next year, the operator Hilcorp Energy (‘Hilcorp’) is installing a new dedicated wet gas pipeline and centralized processing facilities with sufficient capacity to meet the anticipated increases in produced volumes for the next phase of development. This new infrastructure is expected to be commissioned around the end of the year and there may be some production limitations until this time. The restricted choke settings makes comparisons to IP results from earlier wells difficult to reconcile.
For more information please download the following announcement....
