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Real says Windorah still viable

In July, Real reported lower than expected gas flow rates at the project’s Tamarama 2 and Tamarama 3 wells in the Cooper Basin, but the company said the weak performance was due to operational and mechanical issues, not geological ones.

The company said it was now focused on determining the best extraction methods to ensure sustainable flow rates would be achieved from the project’s current and future wells, with Real Managing Director Scott Brown still confident of the development’s potential.

“We want to stress again that ATP927 contains a large gas field and our challenge is an engineering and operational one – something that is relatively common when developing large, unconventional fields,” he said.

Real said its technical team have now had the time to better assess the wells’ results and have come up with a number of operational initiatives to improve performance.

A pipeline licence for Windorah was approved by the Queensland Government in June and Mr Brown said other companies had expressed interest in the project.

“We have held discussions with a number of parties for farm-in and there is interest given the great location in the Cooper Basin with significant gas resources and pipelines connecting the main east coast centres,” he said.

Real is currently the 100 per cent owner of the Windorah Project.

Over the past six months, the company’s share price peaked at $0.14 in February, but has slid down since then and closed out at $0.02 yesterday afternoon.

For more information visit the Real Energy website.

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