Icon Energy: Hydraulic Stimulation on Halifax-1 to Commence (Australia)

December 19, 2012

Icon Energy announced that hydraulic stimulation of the Halifax-1 well is expected to commence on Saturday.

The 15 stage hydraulic stimulation of Halifax-1 across multiple zones will be as follows:

1 stage in each of the Callamarra, Toolachee and Daralingie Formations
2 stages in the Roseneath Formation
2 stages in the Epsilon Formation
1 stage in the Murteree Formation, and
7 stages in the Patchawarra Formation This is the most extensive hydraulic stimulation program of any shale well in the Cooper Basin to date.

Halifax-1 will be stimulated with a pumping rate capacity of 80bbls of stimulation fluid per minute potentially increasing fracture effectivness and gas flow rates.

The Halifax-1 well was drilled to a total depth of 4,267 metres and on every indicator Halifax 1 has exceeded expectations and in Icon’s view the results from other gas wells drilled in the Nappamerri Trough to date.

Key well details include:

thickest REM formation – 460 metres
one of the thickest Patchawarra formations – 490 metres
a gas saturated zone of over 1,300 metres
gas discovery flowed 0.2 MMscf/d (constrained) in Nappamerri Formation
overpressured sands across the REM and Patachawarra Formations.

Subject to successful flow testing, a significant 2C Contingent Resource booking from Halifax-1 is expected to be available in Q1 2013. Halifax-1 is only 2km from existing gas pipeline infrastructure which greatly enhances its early monetisation prospects.

The next steps are to expand the drilling program with the design and drilling of further wells in 2013 (subject to JV approval) to further characterise production potential of shale and basin centered gas targets.

[mappress]
LNG World News Staff, December 19, 2012; Image: Icon Energy