ADX kicks off Romanian gas well workover
ASX-listed European gas producer, ADX Energy, has begun the
installation of specialised down-dole production equipment at its Iecea Mica-1
gas well in Romania with plans to begin flow testing of the target gas zone
next week. The gas well was drilled in 2019 however testing was deferred whilst
ADX awaited the manufacture of the equipment and the lifting of COVID-19
imposed border restrictions.
ADX said the equipment being installed in the well included
the perforating equipment designed to ‘punch’ holes in the steel casing to
allow gas to flow from the reservoir rocks. The company said it was also
planning to perforate the well ‘under-balance’, placing minimal pressure on the
reservoir formation whilst still delivering the maximum gas flow possible,
thereby minimising any damage to the formation at the initiation of flow
testing.
Once the equipment is installed, the Perth-based gas producer
said it would perform production testing and gas sampling of the zones
intersected when the well was drilled last year. ADX is targeting the middle
zone of three Pliocene-aged sandstone layers that collectively hold around 20
billion cubic feet of contingent gas resources.
ADX operates the Iecea Mica-1 well and the Iecea Mare
Production license in Romania through its 49 per cent-owned subsidiary, Danube
Petroleum Ltd.
The company said its technical team is investigating the
potential for a large, stratigraphically-trapped gas pool, beyond what has been
tested by the current well, through the acquisition of additional seismic
surveys planned for later this year. The company will be hoping this effort
leads to an increase in gas resources if the geophysical studies and subsequent
drilling confirms an enlarged area of the gas pool.
Management said it was also considering two potentially
commercial solutions to monetise the discovered gas. The first is via direct
sale of the gas pipeline grid and the second involves the sale of electricity
to a nearby high-voltage power grid via an on-site plant.
The nearby Satchinez-Calacea gas plant is 12 kilometres from
the site of the test well and the power grid is just two kilometres away.
ADX said compositional analyses of the gas samples expected
from next week’s production testing will be critical in determining the
ultimate commercial potential of the gas stream
Any positive news flow over the coming week from ADX’s
imminent production testing at the Iecea Mica-1 gas well will be closely
scrutinised by the market as the company works to monetise this gas discovery.
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