Operations Report: Gas Flows Increase at Ridge Runner 13-17 Gas Well at Clear Creek
Marion Energy Limited (ASX: MAE, MAEO, MAEOA) advises that considerable progress has been made in operations at the Ridge Runner 13-17 (RR 13-17) gas well since the operations update made to the ASX on 15 February 2011.
- Gas production increased to 230,000 cubic feet per day
- Gas produced is being sold, producing revenue and cash flow
- Submersible pump has been installed in well bore
- Pumping operations started which will now reduce the fluid level in the well bore and increase gas flows from this encouraging start
Operations to install a submersible pump into the well bore have been completed allowing pumping operations to commence. These operations will draw down the fluid level in the well bore and create the optimum conditions to maximise production. It is anticipated the fluid level in the well will need to be drawn down to approximately 200 feet above the pump to achieve maximum production conditions.
Since pumping operations commenced, the initial rate of production from the well has increased to a level of 230,000 cubic feet of gas per day. This is very encouraging as it usually takes a longer period of pumping operations before gas production breaks through. Gas rates should continue to increase in the days ahead as the fluid level in the well bore is drawn down. As gas production rates increase, the Company will be in a better position to make statements regarding a future stabilised rate.
Gas produced by the well is being sold into the sales system generating revenue and cash flow.
Management is very encouraged by the increasing level of production as it confirms that the level of gas production should increase as the fluid level in the well is reduced and the back pressure on the reservoir is lowered.
This well was completed by Marion as part of its Clear Creek development program. These encouraging early results indicate the well has the potential to be a significant gas producer as during testing in the initial well completion process, rates of over 1.5 million cubic feet of gas per day were observed.
The Company has a 100% working interest in the Clear Creek Project.
Further updates will be provided as workover operations progress.
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