Golden Gate Petroleum Limited (“GGP”) (ASX:GGP) is pleased to provide the market an update on the Permian Project in Texas, USA.
#5H Well Update
The 5H well continued to unload frac fluid on its own well beyond expectations until we elected to stop the flow and install pumping equipment. Other wells in the immediate area that were frac’d with slick water are reported to have stopped flowing within three to four days after flow back was initiated. The 5H had flowed on its own for 12 days since the end of fracture stimulation work. When the flow rate finally tapered off to around 40 barrels per day (versus 900 barrels per day rate at the beginning), we moved forward with the installation of pumping equipment so as to move off the frac water at the pump rate of 800 barrels per day. A final clean out check with coil tubing was conducted before installing the pumping equipment.
Halliburton reports recoveries of up to 40-50% of frac volume prior to hydrocarbon break through with the use of Perm Stim frac fluid. This is one of the benefits of Perm Stim, higher recovery of frac fluid for less blockage in the wellbore. Indications are that this benefit is being realized on the SRH 5H. Overall, our expectations for the 5H remain high. Applying the latest Halliburton frac design technology which has achieved favorable results in other wells is expected to be a real plus for our anticipated outcomes.
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