Operations Update - Four Clear Creek Gas Wells
- Four wells currently in workover operations with all four producing gas
- Operational progress ahead of levels anticipated at this stage of workover operations
- Management optimistic of achieving targets of establishing meaningful production in the March 2011 Quarter and of reaching a cumulative daily production rate of 5 million cubic feet of gas per day in the June 2011 Quarter
Marion Energy Limited (ASX: MAE, MAEO, MAEOA) advises of the following operational progress at its 100% owned Clear Creek Project.
Operational Details
The Company is currently completing a well workover program on the following natural gas wells located at its Clear Creek Project:
- Utah State Minerals #1 (USM#1)
- Utah Fuel #2 (UF#2)
- Oman 2-20
- Ridge Runner 13-17 (RR 13-17)
The USM#1, UF#2 and Oman 2-20 wells all have submersible pumps installed in the well bores. Pumping operations to reduce the fluid levels in all well bores and in turn reducing the back pressure in the reservoir are all proceeding satisfactorily. To achieve optimum producing conditions, the fluid levels in all wells will need to be pumped down to a level of approximately 200 feet above the pump. Reduction of the fluid level and back pressure is critical to establishing maximum production of gas from the wells. The Company is pleased with progress that has been made with the operations on all wells.
The three wells currently producing gas are not yet stable as the fluid level is still being drawn down: production levels are expected to climb to a sustainable rate during this process.
At the RR 13-17 well the installation of a submersible pump into the well bore is expected later this week after which pumping operations to lower the fluid level and reservoir back pressure will commence. This well has already commenced to flow gas even before pumping operations have commenced.
Management believes that the four wells on a combined basis will produce significant levels of natural gas based on observed pre workover production test rates of approximately 1 million cubic feet of gas per day from the USM#1 well and 1.5 million cubic feet of gas per day from the RR 13-17 well. The ultimate level of production from the wells will not be established until workover operations have advanced further than their current status and therefore management does not consider it appropriate to give any guidance at this stage with regard to likely combined maximum production levels from these four wells.
All four wells are tied into gathering infrastructure and pipelines. Therefore production of gas from the wells will be able to be quickly put into the sales system and commence generating revenue and cash flow.
The Company will further update the market through progress updates as meaningful information becomes available.
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