Real Energy joint venture gets government go-ahead at Venus
Published 26-MAR-2020 11:44 A.M.
3 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
In an extremely important development for Real Energy Corporation (ASX: RLE) the Queensland Government has officially granted title of the Venus Project permit ATP-2051 (previously PLR2019-1-11) to the Strata-X Energy and Real Energy Corporation joint venture (RLE:50%/SXA:50%).
Project Venus is located within the main Walloon coal seam gas (CSG) fairway in the Surat Basin, Queensland.
It is immediately adjacent to gas infrastructure and is prospective for CSG over its entire area of ATP 2051.
A recent independent review of the data within and around the permit certified a Prospective Gas Resource of 658 BCF (694 PJ) gross, 329 BCF (347 PJ) net to Strata-X in the Walloon coal seams in ATP 2051.
Underlining how the joint venture will progress, Real Energy will be the administrative and commercial operator while Strata-X, at least for the initial phase to predictable reserves certification, will be the technical operator.
Aligning with Strata-X appears to be an astute decision by Real Energy as Ron Prefontaine is the executive chairman of the group.
He was the technical director of Arrow Energy and founding managing director of Bow Energy, two ASX-listed CSG companies that were separately taken over in 2010 and 2011, respectively, for a combined total of approximately $4 billion.
Strata-X is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in Queensland, the States of California and Illinois in the United States of America and the Republic of Botswana.
Previous wells suggest high probability of success
As illustrated below, the Venus Project is adjacent to gas infrastructure, and the JV plans to expedite appraisal and conversion of resources to reserves to fast track development.
There are several previously drilled CSG and conventional wells located within and around ATP-2051, including a fully cored well indicating the upper Walloon coal seams are fully gas saturated.
One of the historic wells in the permit, the Connor-1 well, was drilled immediately adjacent to the core hole, then cased and under-reamed (enlarged beyond the regional drilled size), but it was never properly flow-tested.
The Project Venus JV plans to re-enter the Connor-1 well to reservoir-enhance and flow-test the upper Walloon coals.
The re-entry flow-test program is designed to prove sufficient water flows to allow efficient dewatering and early gas flows from the fully gas saturated upper Walloon coal seams.
The Connor-1 re-entry start date will be announced when the contractors and timing are confirmed.
Assuming the Connor-1 re-entry flow-test goes to plan, the Project Venus JV expects to drill two wells offsetting Connor-1 and fully equip the three wells as a production pilot program.
The pilot program will include long term flow-testing of the upper Walloon coals with the objective to prove commercial gas flows rates.
Once commercial gas flow rates are achieved in the pilot program, the Project Venus JV can commence progressively converting the 658 BCF (694 PJ) Prospective Gas Resource to reserves with the goal to fast track development of the project, thereby offering the potential for early cash flows.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.