Marion Commences Well Workover Operations Program on its Production Wells at Clear Creek
Marion Energy Limited (ASX: MAE) is pleased to announce that following the successful conversion of the ASD 3-17 well into a water disposal well, the Company has commenced its well workover program on its production wells.
These operations will involve workovers on up to a total of 16 wells at Clear Creek. These wells are a mix of wells drilled by the Company and also some old wells which the Company believes may be able to be profitably brought back onto production. An overview of the work program involving up to four stages of operations was set out in a release to the ASX dated 3 November 2010.
Initially the operations will focus on three wells, the Oman 2-20, the Utah State Minerals #1 (“USM #1”) and the Ridge Runner 13-17 (“RR 13-17”). An overview of the initial operations to be undertaken on each well is set out below. Given the nature of these operations, the Company cannot at this time predict accurately the time frame within which particular milestones are likely to be reached. As has been indicated in recent releases to the ASX, the Company is targeting the March 2011 quarter to establish meaningful production from these wells.
Oman 2-20
Operations have commenced on the Oman 2-20 to bring this well back on production. Some initial workover operations were undertaken in late 2009. The well was then shut in until the present. Prior to being shut in, the well was producing at a rate of approximately 200-250,000 cubic feet of gas per day. Operations will involve the removal of a bridge plug covering the deepest perforations in the well. This will then be followed by running a submersible pump into the well and subsequently commencing production. Prior to any significant gas going into the sales line, the fluid level in the well bore will need to be lowered through pumping operations to approximately 200 feet above the top set of perforations.
Utah State Minerals #1
Once production operations have sufficiently progressed at the Oman 2-20, work will start at the Utah State Minerals #1 (“USM #1”) well. This well is one of the old wells drilled in the 1950’s and 1960’s and was one of the first wells that Marion worked on before the gathering infrastructure was put in place. It tested at production rates of up to 1 million cubic feet of natural gas per day at the time. This well will need to be pressure tested for mechanical integrity prior to running a new pump in the hole and bringing it back on production. As with the Oman well, the fluid level in the well bore will need to be lowered before the well can achieve its full productive potential.
Ridge Runner 13-17
Once the pump has been run on the USM #1 well, operations will commence on the Ridge Runner 13-17 well that is located on the same well pad as the Ridge Runner 11-17 and 2-19 wells. The well will initially require the removal of a bridge plug. A larger pump will be run into the well bore after which operations to draw down the fluid level can commence. Once this is complete, production operations will then commence. Before the new gathering infrastructure was built by Marion, this well was production tested with flows of up to 1.5 million cubic feet of natural gas per day. Although this number is indicative of the well’s production capability, it does not necessarily reflect actual future performance.
The Company will further update the market as meaningful information becomes available.
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