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AWE announces operations recommence at Arrowsmith-2

Friday, Jan 18, 2013

AWE Limited (ASX: AWE) advises that the shale gas and tight gas testing program at the Arrowsmith-2 well, situated in the north Perth Basin, Western Australia, recommenced today.

The well was shut-in in December 2012 at the conclusion of swabbing operations of the Kockatea Shale interval to monitor pressure build-up characteristics of the fracture stimulated zone.

The Operator of the EP413 Joint Venture, Norwest Energy NL, advises that a pressure/temperature gradient survey is currently being performed to confirm fluid interfaces in the wellbore, and to assess current reservoir pressure at the perforations.

Analysis of surface pressure and sonic fluid level data indicate the reservoir is approaching its original pressure, with positive signs the reservoir is able to recharge.

Following the flow of both oil and gas from the Kockatea Shale interval, post the hydraulic fracture stimulation in September 2012, flowback operations and a detailed monitoring and evaluation program have been ongoing. During flow back, approximately 78% of injected fracture fluids were recovered after swabbing the well to a maximum planned depth of 2,600 metres.

Once evaluation of the Kockatea is complete, the interval will be isolated and the plug between the Kockatea Shale and the Carynginia Formation will be milled out. This operation will enable the flow back and clean up process to recommence on the Carynginia interval.

This work will begin as soon as the necessary equipment becomes available, currently estimated to be towards the end of January 2013.  Norwest advise that the testing of all remaining zones is expected to take approximately 3-4 months.

Source: AWE

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