Oz Myall Creek 5A Well Hits Snag
The Myall Creek 5A well in Queensland, Australia, has encountered problems and a section of the drill has become stuck and some equipment has been lost but Armour Energy intends to complete the drilling, it said November 12.
“During drilling, a section of the drill collars above the jars in the bottom hole assembly (BHA) became stuck due to differential sticking and caused drilling to stop. Operations to retrieve the BHA were not successful,” Armour said.
“The well has been fully cemented back to the 9-5/8” cashing show, and a side-track drilling operation is currently underway,” it said.
It’s planning to complete Myall Creek 5A and tie its production into the existing Myall Creek compressor station which connects to the Kincora Gas Plant facility and Armour’s sales gas pipeline to Wallumbilla, it said.
The well is the second in Armour’s current drilling program as part of its growth strategy. It has been producing and selling on average 9 TJ/day (8.4 million feet3) since February this year, 170 barrels/day of oil and condensate and 14 tonnes per day of LPG, it said.
“Armour is continuing investigations into the restart of other existing wells that are not currently on production. The company expects to progressively restart additional wells over the coming months, delivering increased production and revenues,” it said.
“Combined with new wells, plus any necessary further work on the Kincora Gas Plant, the Company will target gas production to be increased to 20 TJ/day over the next 12 months,” it said.
Armour announced first gas sales from Myall Creek 4A October 8. It’s the company’s first well drilled, connected and brought into commercial operations since it acquired the Kincora project from Origin Energy.
It is also the first well under Armour’s Gas Acceleration Program agreement with the Australian Government, which provides partial funding – of up to A$6 million ($4.23mn) – of the company’s four well program which is to be completed by June 2019.