Production the key to 2005: Innamincka

IN its first year, Innamincka Petroleum concentrated on exploration activity, making significant hydrocarbon finds at Yarrow, Flax and Juniper in the Cooper Basin, but in 2005 its emphasis will be on establishing commercial production and providing early cashflow, the company has said.

Innamincka will still conduct wildcat exploration but field evaluation of existing discoveries will become increasingly important, the company said in a preview of its 2005 program.

These activities will allow better definition of petroleum reserves and the acquisition of additional hydrocarbon composition and reservoir information, Innamincka said.

The company recently completed production testing at Yarrow-1 and the well flowed at 1.6 million cfd with associated condensate of 15-40 barrels per day.

Data interpretation indicated significant drilling fluid invasion and supported fracture stimulation of the well to boost gas and condensate production, Innamincka said.

Flax-1 flowed at rates between 170 to 230 barrels oil per day and 300,000 to 400,000 cubic feet gas per day. Total oil production was about 10,000 barrels.

Innamincka said it planned to use fracture stimulation to significantly increase the oil production rate.

At Juniper-1, the company said it intended to drill a downflank well to confirm field size and to provide further assessment of reservoir productivity.

At the Crocus-1 gas discovery in Pel 101, a farminee would be sought for drilling and testing Crocus and nearby discoveries.

In 2005, Innamincka’s oil exploration program would centre on the Reg Sprigg-Acrasia structural high. A 3D seismic survey would be conducted mid-year over northern PEL 103 and the adjacent permit and two exploratory wells would probably be drilled in the third quarter.

The company’s gas exploration program will be limited to the Ginko-1 well, located in PEL 101, about 6km north of Santos' producing Coonatie gas field.