Page 11 - AsianOil Week 01 2021

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In a statement, Empire said it would work flow conditions had been stabilised and once
with the government to negotiate replacement data from the 30-day flow test were available in
grants. the first quarter of 2022. The company added
The decision came around a week after that Netherland Sewell and Associates had been
Empire had reported that it has successfully commissioned to provide an independently
drilled, cased and suspended the Carpentar- certified resource estimate, which it said could
ia-2H (C-2H) well in in EP187. C-2H is now result in a contingent resource booking during
awaiting fracture stimulation and production the March quarter of 2022.
testing, which are scheduled to start in the sec-
ond quarter of 2022. Caution
The well was Empire’s first horizontal well The Northern Territory is estimated to contain
located within EP187. It is also the longest 200 trillion cubic feet (5.7 trillion cubic metres)
horizontal well drilled to date in the Velkerri of shale gas resources. Exploration and produc-
shale sequent according to the company’s state- tion companies have been talking up the poten-
ment, with a lateral of 1,345 metres. The vertical tial to replicate the US’ shale boom with this
section of the well, drilled to a depth of 3,150 basin and others in Australia for some time, but There have
metres, intersected 192 metres of liquids-rich others have warned that initial estimates could
shale gas net pay across the four middle Velkerri prove to be overblown. also been
pay zones – Velkerri A, B, Intra A/B and C. Fur- Indeed, Australia still relies on a small num- warnings that
ther results from the well are anticipated in the ber of results from appraisal wells to estimate
first quarter of 2022. the potential of areas covering hundreds or the conditions
thousands of square kilometres. Observers
More well results have warned that this could result in sim- that facilitated
Empire is one of a handful of companies explor- plified assumptions about areas where con-
ing shale plays in the Northern Territory, along ditions could vary dramatically and where the US shale
with Santos, Tamboran and Origin Energy. numerous other factors need to be taken into boom cannot
For Santos and Tamboran, the latest well consideration.
results also represent milestones. Tamboran There have also been warnings that the condi- be replicated as
said that one of the two wells now flowing tions that facilitated the US shale boom cannot
gas was the longest and deepest successfully be replicated as easily elsewhere. Nonetheless, easily elsewhere.
stimulated horizontal well in the Beetaloo exploration is gradually proceeding, and more
sub-basin. The T2H and T3H wells under- well results will present a clearer picture of Aus-
went 11 and 10 stages of fracture stimulation tralia’s shale potential over time.
respectively. This will play out in the face of considerable
The wells were de-watering and undergoing opposition from environmental groups, how-
clean-up as of December 30, and Tamboran said ever, and further challenges such as that against
it expected to announce flow test results once Empire can be expected.™

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