Falcon Oil & Gas Ltd (LON:FOG, CVE:FO) said it and partner Origin Energy will conduct further well operations in order to deliver a flow test for the Kyalla 117 N2-1H ST2 well.
A fracking programme got underway in early October and since late October the well has undergone ‘flowback’ operations to recover the frack fluid.
Some gas shows have been observed, but, a measurable gas breakthrough has yet to occur, the group added.
Data analysis has indicated higher pressures in the horizontal section of the well than in the surrounding reservoir, Falcon said. It is due to the saline content, density of the flowback fluid, and the hydrostatic column weight of this fluid in the vertical section, it added.
Intervention operations – to re-enter the well and deploy nitrogen lift techniques to lower pressures – are now being planned. The company noted that such activities are not uncommon and similar measures were applied to the successful Amungee NW1H well.
Timings are currently being considered as the wet season is approaching, and, the company noted that if the well is temporarily shut-in then operations will resume in early 2021.
“Based on all the technical data gathered from conventional cores, sidewall cores, DFIT’s and extensive wireline logging, together with the successful completion of the hydraulic fracture stimulation, we remain optimistic about the potential outcome of the production test,” said Philip O’Quigley, Falcon chief executive in a statement.
“While we have not had a successful flow rate to date, our ongoing goal is that the planned well activities will support a successful outcome," he added.