Armour has announced it will be re-stimulating the Warroon-1 well located in the Surat Basin from mid-October 2021.
The company said the cost of the re-stimulation will be funded by a private entity, consistent with previous guidance that Armour would seek partners to fund production enhancement work programs.
The Warroon-1 well was drilled by Hematite Petroleum in 1979 targeting the Showgrounds sandstone where it returned 8.1 mmscfd in the drill stem test.
The well was completed in the Showgrounds sandstone and produced 3.5bn ft3 of gas, 95,500 barrels of condensate and 6950 metric tons of LPG.
The company’s 2020 petrophysical analysis indicated a gas-saturated porous zone throughout the supper Rewan sand interval.
After the clean-up phase, the Warroon -1 well will begin flowing additional gas into the Kincora gas gathering system for processing and sale via the Kincora gas processing plant.
Armour anticipates that the Warroon-1 well stimulation program and cleanup process will take between 10 and 14 days.
The investing entity funding the activity is owned by a group of private investors, including parties with experience in fracture stimulation.
The privately entity will receive 50 per cent of the incremental revenue produced above the current well production profile less costs for a period of six years, while Armour will retain the remaining income.
The capital for the activity is estimated at $700,000.
Armour chief executive officer Brad Lingo said he was pleased with the partnership and was looking forward to seeing the results from Warroon-1.
“We are excited to see further investment in the field and realise the full potential of the Warroon-1 well,” Lingo said.
“Armour sees further opportunity for partnering to fund value-adding work programs and to enhance production.”
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