The VIC/P44 Joint Venture has conducted a production test of the Casino-3 well in Australia's offshore Otway basin.
The test measured gas flow over the primary reservoir zone to confirm reservoir flow characteristics over the interval 2,004-2,013 m. Gas flowed at the maximum choke-constrained rate of 1.25 MMcm/d through a 25.4-mm choke at a well head tubing pressure of 126,856 kilopascals.
The successful test means that the JV can now finalize reservoir modeling and begin detailed project engineering. The group is looking for first production in 2006.
The Casino-3 production test followed an announcement a week earlier that Casino-3 had intersected a 20-m net gas column in the target Waarre sandstone. Analyzed wire-line log, formation pressure, and gas composition data indicated that a single gas pool connects Casino-3 with the previously drilled Casino-2 well.
The Casino-3 well is being plugged and abandoned as planned.
The joint venture partners have a long-term gas contract in place with TXU Australia to supply gas from the Casino field. The contract is conditional on the final results of the Casino-3 well, confirmation of economic reserves for the Casino field, and regulatory approvals.
The Casino gas field, discovered in September 2002, is 29 km southwest of Port Campbell and 250 km southwest of Melbourne. The Casino-3 well is 3.3 km northeast of Casino-1 and 2.4 km northwest of Casino-2, which both intersected gas bearing Waarre sandstone reservoirs.
Santos Ltd. operates the VIC/P44 permit with 50% interest. JV partners include Peedamullah Petroleum Pty. Ltd. with 25% and Mitsui with 25%.