AYO unknown

here comes whicher

  1. 3,353 Posts.
    Looks like the Asians may have something in mind for this discovery if it happens. $12M is a lot for a drill, but hopefully a good share of it is farm out. This will be make or break for Amity at Whicher.


    Amity tries again with S-W gas

    By Michael Weir

    AMITY Oil is making a last-ditch attempt to commercialise the sizeable Whicher Range gasfield in WA's south-west and is in negotiations with two Korean companies to farm into a make-or-break well.

    It is understood the Tony Barton-chaired company is in negotiation with two Korean companies linked to the giant Government-owned electricity utility Korean Gas Corporation (Kogas).

    A deal is expected to be concluded within two weeks and the $12 million well is scheduled to be drilled in the third quarter of this year.

    Mr Barton declined to comment yesterday.

    The two Korean companies are understood to be Korea National Oil Corp and Seoul City Gas.

    A deal would involve farming-out between 40 and 50 per cent of the Whicher Range-5 well.

    Amity shares surged 4¢, or 5.5 per cent, to 77¢ yesterday, taking its gains to about 15 per cent in the past two weeks.

    A commercial gas flow from Whicher Range, south of Busselton, would provide a welcome competing gas supply for the south-west.

    The area south of Busselton still relies on bottled liquefied petroleum gas and there is a host of big mining projects in the region that would benefit from a fresh supply of natural gas, minus the cost of piping it 2000km from the North West Shelf.

    Amity Oil has been trying to crack the Whicher Range puzzle for more than six years.

    The field is estimated to contain 3.7 trillion cubic feet, but the ground characteristics mean the gas is effectively locked in and does not flow easily.

    Whicher Range was discovered in 1969 and four wells have been drilled by various operators.

    Previous attempts to get the gas to flow at commercial rates (estimated at seven to eight million cubic feet per day) have only served to damage the reservoir and restrict gas flows.

    US company Pennzoil spent a total of $20 million in the late 1990s testing a technique called hydraulic fracturing.

    When the method was tried on Whicher Range, however, the water-based fluid swelled the clay in the reservoir and almost stopped the gas coming out altogether.

    Since then Amity has spent almost $US1 million re-engineering the well and has come up with a plan to air-drill a well, a technique successfully used in the Green River Basin in the US.

    Liquid carbon dioxide will then be pumped in and once it turns back into gas should help to open up the reservoir.
 
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