Bengal Energy Ltd (C-BNG) - News Release Bengal Energy Ltd (C-BNG) - News Release
Bengal completes Wareena water shut-off operations
2022-09-12 20:07 ET - News Release
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Mr. Chayan Chakrabarty reports
BENGAL PROVIDES OPERATIONS UPDATES FOR RECENT CAMPAIGN
Bengal Energy Ltd.'s water shut-off operations at its Wareena 1 and Wareena 5 sites have been completed successfully.
The water shut-off operations at the two Wareena sites were completed on time and on budget, with initial results that may support the company's plans for further interventions designed to increase natural gas flow. Subject to the success of these interventions and positive test results, Bengal will evaluate its future capital and commercial plans to tie-in the wells to allow for commercial production and sale of natural gas from the wells.
At Wareena 1, the wellhead pressure was approximately 2,300 pounds/square inch, based on a measurement taken prior to the workover in 2021. However, there was considerable cross flow of water from the dominant lower watered out zone which resulted in diminished well performance. Postwater shut-off, the fluid level increased and the company is monitoring the well. These data support the company's expectation that the reservoir should be capable of flowing commercial volumes of natural gas following the remediation of perforation damage resulting from more than eight years of inactivity. The company intends to reperforate all of the PC-20 sand and swab and test the well. These operations are expected to occur as soon as equipment and contractors are available.
At Wareena 5, the company has been monitoring the well postwater shut-off and the data indicates that the PC-20 sand was likely impaired during the well's shut-in period of more than eight years. The company intends to reperforate all of the PC-20 sand and swab and test the well in concert with its operations at Wareena 1.
The company has also reported the deployment of its early oil production system (the Bengal EOPS) at the Caracal 1 production area in Australia's Cooper basin. The successful commissioning of the Bengal EOPS -- a mobile Lufkin "Road Runner" pumping unit -- allows for oil production from Bengal's wells as well as being able to offer pumping services to third parties. Further evaluation is required to assess the commercial viability of the Caracal 1 well for long-term oil production.
President and chief executive officer Chayan Chakrabarty said: "We are encouraged by these results which are important incremental steps in the company's advancement as an operator in the Cooper basin. The two Wareena sites have now demonstrated they have natural gas. Assuming successful remediation, we will look forward to connecting these wells to our Wareena pipeline and making more gas available for both domestic consumption in the Australian market and for export to take advantage of the strong international market. While we wait on the future tie-in of the wells to the pipeline, our plan is to utilize Wareena gas production to commission our prototype early gas production system, the Digital Mining Donga (DMD), to utilize early gas production in producing digital currency."