Operations Update - Workover Operations Commence on Fifth Well at Clear Creek
Marion Energy Limited (ASX: MAE, MAEO, MAEOA) advises that it has commenced workover operations on the Utah Fuel #3 (UF#3) well located at its 100% owned Clear Creek Project.
Utah Fuel # 3 (UF#3) Well
Workover operations on this well have commenced. The UF#3 is one of the wells drilled during the initial development of the field and was shut in during the 1970’s. The well had been a significant gas producer. At the time the well was shut in for economic reasons, due to the low gas price and high costs incurred for water disposal, while flowing at over 200,000 cubic feet of gas per day. With the Company now owning its own water disposal well, enabling it to dispose of water that will be produced by the well, management believes production from this well may now be economic and with the installation of a pump to remove the water from the well bore, higher production rates than those at the time of shut-in may be achieved.
As for all the other wells in the current workover program, for the well to achieve its full productive capacity the fluid (water) level in the well bore will need to be drawn down through pumping operations to relieve the back pressure on the producing reservoir. An electrical submersible pump is being installed in the well and pressure testing is being carried out to establish the mechanical integrity of the well.
As the pump draws down the fluid level in the well bore, the back pressure on the reservoir will be relieved and production should increase. It is anticipated that the fluid level in the well bore will need to be drawn down significantly before optimum producing conditions can be achieved.
Given that this well has been shut in for many years and workover operations are in progress, it would be premature at this stage to give any guidance with regard to possible production levels for this well.
Further updates will be provided as meaningful progress occurs and as milestones are reached.
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