April 29, 2010
reported in the March quarter update Castello produced 5.4 million
cubic metres at an average daily rate of 60,000 cubic metres a day which
is less than the current maximum pipeline entry rate of level of 70,000
cubic metres a day.
While plant commissioning has been successful, and production has been
relatively stable, there has been a faster rate of decline in wellhead
pressure than expected.
We are investigating the possible reasons for a larger than anticipated
decline in wellhead flowing pressure. Specifically the Company plans to:
- Conduct a downhole pressure measurements at the earliest practical time; currently expected in the second half of May
- Assess impact on reservoir performance and projected field life. This may involve a reduction in daily production rates
- Conduct a comprehensive and independent re-estimate of field reserves incorporating these pressure test results
These technical investigations will take time to complete and
the Company will update the market on the timing of both well
intervention and the evaluation of the downhole pressure measurements.
At this stage, it is expected that the downhole pressure testing will be
completed in May and an update on the results provided to the market in
Based on technical analysis conducted following the March quarter of
production, if the pressure reduction continues at current rates this
would lead to lower production rates than previously projected and
substantially reduced reserves. Proven reserves at Castello were
previously estimated to be 4.6 bcf.
Po Valley Energy
0417 851 303
Field Public Relations
(08) 8234 9555 / 0414 822 631
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