SITE PREPARATIONS COMMENCED FOR VENUS-1 CSG WELL Strata-X Energy Ltd. and Real Energy, operator of Project Venus, located within the Surat basin, Walloon CSG fairway, has commenced site preparation and is mobilizing equipment for the drilling of the Venus-1 well. The Venus-1 well is expected to spud next week.
After reaching total depth, the plan is to case and suspend the well, and then demobilize the rig. Shortly afterward, a coil tubing rig will be mobilized and utilized to run a reservoir enhancement program. After the enhancement, the well will be set up as the first pilot production well for a controlled fluid drawdown, which testing will continue into early 2021. The production testing is designed to prove initial gas breakout and increasing gas flows over the controlled drawdown period. These data are required to model future gas flow rates and potentially commercial gas flow rates.
The results of the production test will also be used to decide to either expand the pilot or, if commercial flow rates are achieved, commence an aggressive appraisal program designed to certify sufficient reserves for the Project Venus JV to secure gas sales agreements, allowing for commercial field development.
About Project Venus
The 154-square-kilometre Project Venus (Strata-X 50 per cent and Real Energy 50 per cent) is located within the Walloon CSG fairway in the Surat basin. An independent expert has certified, on a best estimate basis, a prospective gas resources of 658 billion cubic feet (694 petajoules). Given the location of this tenement immediately adjacent to gas infrastructure and within a proven giant gas fairway, the Venus Project offers the potential to achieve early cash flows.
Real Energy and Strata-X Energy to merge
As announced on July 14, Strata-X Energy and Real Energy have agreed to merge and rename the merged company Pure Energy. Following the merger, Pure Energy will have 100 per cent of Project Venus.