Aussies kick off Texan gas project

THE Flour Bluff, Texas gas exploration and development program – a ‘low-risk, high upside’ project – has begun with the arrival of the drilling contractor to drill the first well, joint venture partner Sun Resources has announced.
Aussies kick off Texan gas project Aussies kick off Texan gas project Aussies kick off Texan gas project Aussies kick off Texan gas project Aussies kick off Texan gas project

Sun and two other Australian companies, Victoria Petroleum NL and menswear company Tony Barlow Limited, have joined with three US partners to undertake a three-well exploration and development program and a three-well work over program at Flour Bluff, on the onshore Gulf Coast near Corpus Christi.

The Flour Bluff Project is considered to be a relatively low risk, large gas development with major upside from the exploration of deeper sands in a major giant gas field which has produced to date some 1.3 trillion cubic feet of gas and 65 million barrels of oil equivalent mainly as condensate, according to Sun.

The area has extensive established production facilities and pipeline infrastructure.

“This offers Sun Resources a unique opportunity to grow with its 12.5% share of the present 3P categorized 92.5 BCF gas reserves with a realistic upside to 300 BCF from further exploration success,” the company said in a statement.

The aim of the programs in 2005-06 is to bring project gas production from the current level of 3.2 million cubic feet per day 40 million cubic feet per day on the 3P reserve base. If a strong exploration upside is confirmed, this could rise to an eventual 80 million cubic feet per day, according to Sun.

The first well of the program – the 3,810 metre deep BG Webb-1 – will spud in the next week and will test multiple Frio sand targets in the Flour Bluff field, a large upthrown, three-way dipping fault closure.

The well is specifically targeting 19 BCF of gas potential in the J and K sands in the drainage capture of the well. The total potential includes undeveloped 2P reserves of 9.22 BCF of gas (Ryder Scott 2004 reserve report) and an additional potential of 9.78 BCF of gas. Historically wells have produced up to 20 BCF of gas in this field, according to Sun.

The BG Webb #1 well will also test the overview concept of the existence of a potential 160 BCF of gas in multiple J and K Frio sands below current 3P reserves of 67 BCF of gas in the deep portion of the regional structure of the field.

Following the drilling of the well the rig will be used to drill two wells (EFB D-10 and EFB D-24) on the East Flour Bluff field which lies in a downthrown four-way dipping structural closure immediately to the east of the Flour Bluff field.

East Flour Bluff field has a present 3P reserve of 22 BCF of gas with further upside potential of 44 BCF of gas, in all 66 BCF of gas.

Partners in Flour Bluff include: Texas Crude Energy Inc (operator) 37.5%, Sun Resources NL 12.5%, Victoria Petroleum NL 12.5%, Tony Barlow Limited 12.5%, King Ranch Energy Inc 12.5% and Davis Gulf Coast Inc 12.5%.

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