Armour Energy: continuous flow at Egilabria-2 shale gas well

Armour Energy said that the Egilabria 2 well has started to continuously flow gas through the test separator during the flowback recovery process.  

Continuous flow is being observed with intermittent flaring.  However, Armour has not yet measured the flow rate.  The company expects to begin flowing annulus gas through the separator in order to measure a stabilized flowrate by the end of the coming week, which is then expected to further increase as more stimulation fluids are recovered.

The Egilabria 2 well is located in ATP1087 in North‐West Queensland, 300km north of Mt Isa and is 100% owned and operated by Armour.

The well is currently flowing back a mixture of stimulation fluids and gas via a downhole PCP pump through the tubing.  The annulus is accessible for pressure and fluid level measurements but has been shut in.  The annulus pressure at surface has increased to 630psi over a 7 day period whilst the company is pumping fluid through the tubing.  The pressure in the annulus is building at rate of 4‐7 psi per hour.

The start of continuous gas flow followed 8 days of fluid pumping of up to 122 barrels per day.  To date 57% of the original 11,400 bbls stimulation fluids that were originally pumped into the well have been flowed back.  This is an increase of 12% since the flowback was recommenced earlier this month.  Flowback fluid samples have been taken and are currently being analysed.

The Lawn Shale is present in Egilabria 2 between depths of 1,583 and 1,720 metres, at 137m thick, and hosts up to 8% Total Organic Content (TOC).  During the drilling of the well, significant gas shows and flares were encountered between 425 and 1,870 metres vertical depth.    Analysis of the hydraulic stimulation undertaken in the lateral well, drilled from 1,300m depth during 2013, shows that a single zone accepted the highest volumes of larger sized proppant (used to create and hold open a conductive hydraulic fracture).  It is therefore expected that the majority of the returning fluid and gas flow will be coming from this single zone.

Press Release, September 29, 2014; Image: Armour Energy