CRA has completed a natural gas well testing program and is continuing data assessment of the company’s exploration activities at Whicher Range, south of Busselton. The review has included analysis of the most recent well testing program and a detailed study of almost 50 years of past exploration work. The results confirmed our confidence in the technical feasibility of conventional natural gas production (allowing the gas to flow freely from the reservoir to the surface). This evaluation has confirmed our view that unconventional production – or fracking – will not be successful. It’s a technology we have not and will not be utilising at Whicher Range.
Additional data (reservoir pressure monitoring) is necessary to complete both our technical and commercial analysis.
We now need to complete two important steps to determine the project potential –
Reservoir pressure monitoring at the two suspended wells (WR-1 and WR-4) in 2018 to finalise our recent major data / technical assessment (this is passive monitoring and involves no new drilling, or production testing of the gas resource); and
A revised commercial assessment of the project during 2018.
We will also be undertaking ongoing care and maintenance of the suspended wells and associated well site areas, in accordance with an environment plan under assessment by the Department of Mines, Industry Regulation and Safety.
CalEnergy remains focused on the Whicher Range resource and we will continue to keep the community informed of our progress.
It is disappointing that much of the recent public commentary on the project has been misguided, misleading – or both. Our recent efforts remain prioritised on getting all the data and analysis results we need to make informed decisions. Only then can we determine the nature of any future project activities.
References in the local media to a recent university paper presented at a conference in Saudi Arabia have absolutely no relevance to our project.
More detailed information is available from our most recent project update at http://www.calenergyresources.com/australia/