Cue Energy Resources has announced it has completed the West Mereenie 30 (WM30) well, part of the Mereenie gas field in the Northern Territory, Australia.
The WM30 well was air-drilled through the primary Pacoota-3 reservoir target to a total measured depth of 1,620m and is expected to enhance gas production rates.
The completion of WM30 follows the earlier success of the WM29 well, which is now operating at a production rate of approximately 5TJ per day.
The two-well drilling programme, which includes both WM29 and WM30, was executed ahead of schedule and is projected to conclude under the initial budget.
Ventia Rig 101, utilised for the drilling operations, has been released following the completion of the wells.
Cue Energy holds a 7.5% interest in the Mereenie joint venture (JV), alongside Echelon Resource (formally known as New Zealand Oil & Gas) with 42.5%, Horizon Oil at 25%, and Central Petroleum, the operator, also holds a 25% stake.
WM30 is expected to be connected to the Mereenie production facilities by early next month, enhancing the JV's ability to supply additional gas under the Northern Territory Government Gas Sales Agreement (GSA).
Horizon CEO Richard Beament said: “This is a great outcome for the Mereenie JV with the successful completion of the two-well drilling programme. With the second well scheduled to be tied in over the coming weeks, incremental gas volumes from these wells can be sold under the recently executed NT Government GSA. We would like to congratulate and thank the operator, Central Petroleum, and their drilling contractor, Ventia, for an outstanding job.
“The drilling programme was completed safely, on time and within budget through the hottest months of the year. The drilling of a two-well infill drilling campaign so soon after completing the Mereenie acquisition is a tremendous outcome and assists in further unlocking the value potential we see in Mereenie.”
Earlier this month, New Zealand Oil & Gas increased its stake in the Mereenie field in Australia’s Amadeus Basin by acquiring an additional 25% equity interest.
The acquisition boosted its 2P reserves by 41% to 23 million barrels of oil equivalent.
The deal included an upfront payment of A$42.5m ($27.53m), with potential contingent payments of A$9m over the next two years, subject to conditions.
"Cue Energy completes second Mereenie production well in Australia" was originally created and published by Offshore Technology, a GlobalData owned brand.
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