Australia-listed Empire Oil & Gas is set to test the Red Gully-1 well in Western Australia, after receiving approval for a well test programme from the government.
The environmental plan for the B sands perforation and well test programme for Red Gully-1 has received approval from the WA Department of Mines and Petroleum.
Empire’s programme is designed to increase gas sales and to allow the company to get independent reserves certification at the project.
The programme is now set to go ahead early next month.
All of the gas and condensate processed at the Red Gully facility and sold to Alcoa and BP comes from the D sands of the Red Gully-1 and Gingin West-1 wells.
Empire’s programme will test the B sands of the well, which sits above the D sands containing two of the bigger gas pools.
The company is testing to see if the higher sands hold enough gas to allow the joint venture partners to supply Alcoa the 15 petajoules as previously contracted, and to see if there is any potential for more sales.
Empire has awarded a contract to Expro Australia to carry out the testing.
Expro is set to move equipment and personnel to the site by 9 June to start the programme, with a specialised contractor also set to arrive on site to change the well “Xmas Tree”.
The well programme, the change of the “Xmas Tree” and the shutdown of Gingin West-1 because of its proximity is expected to last between 12 to 15 days.
Scheduled maintenance will carried out on the facility while the test is being carried out.
Empire will fund its share of the cost of the well programme by drawing down $1 million on the credit facility provided by major shareholder, ERM Power.