UPDATE: Karoon: Promising Well Test Results Offshore Western Australia
May 27 2010 - 4:21AM
Dow Jones News
Karoon Gas Australia Ltd. (KAR.AU) said Thursday that further
production testing on the Kronos-1 exploration well offshore
Western Australia state indicates that any nearby production wells
could potentially flow gas at commercial rates.
Karoon and joint venture partner ConocoPhillips (COP) recently
said that an initial production test on the well generated flow
rates at 26 million standard cubic feet per day, but added that the
flow was restrained by the size of the testing equipment.
"Based on an analysis of the well test data, Karoon believes
that future production wells drilled adjacent to the Kronos-1
location have the potential to flow at commercial rates in excess
of 100 million standard cubic feet per day," Karoon said.
If it can convert an existing contingent resource estimate for
the greater Poseidon field of at least 7 trillion cubic feet of gas
into a proven resource, flow rates at such levels would be enough
to underpin construction of a standalone liquefied natural gas
terminal.
Karoon reiterated that more exploration and appraisal drilling
will occur on the greater Poseidon structure in the first quarter
of 2011.
Kronos-1 found gas in a deep structure, but shallower wells
typically produce higher gas yields. A shallower discovery in the
campaign, Poseidon-1, hit a large gas column but a flow test
couldn't be completed after a testing tool got stuck in the
well.
Karoon said a condensate-to-gas ratio of 9.5 barrels per million
standard cubic feet was measured at the surface of Kronos-1, which
is below its target for the surrounding area of 33 barrels.
Gas from Kronos-1 had a 10% carbon dioxide content, Karoon said,
in line with expectations.
-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692;
Ross.Kelly@dowjones.com
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