Australian oil and gas producer, Mosaic Oil NL advises that preparations are being finalised for the Hydraulic Fracture stimulation ('frac') of the Churchie-1 well within the Churchie Field, PL 192, Surat-Bowen Basin, Queensland. Field operations are now scheduled to commence around mid-April 2010.

Significant flooding around the town of Surat delayed the operation, originally scheduled for March, but the floods have receded and all required equipment and frac material is now available. Mosaic Oil has taken advantage of the delay to commission additional fluid testing on core plugs to refine the frac fluid selection. These tests are expected to be completed shortly.

'Road repairs and minor earthworks will be undertaken shortly as floodwaters have now receded around Surat. The earthworks, core work and equipment preparation will then be completed over the next couple of weeks, allowing field operations to commence later in April,' Mosaic Oil chief executive Alex Parks said.

In February 2010, Mosaic Oil awarded BJ Services a contract for the hydraulic fracture stimulation of Churchie 1. The Churchie 1 fracture stimulation job has been designed to propagate and extend a substantial fracture within the Tinowon sand formation. This fracture is designed to extend some 250 metres either side of the wellbore. If the stimulation propagates as planned, initial stabilised gas flow rates will increase from pre-fracture rates of less than 0.5MMscf/day to post-fracture rates of more than 1.5 MMscf/day.

This work, now underway, is the first stage of a wider program aimed at enhancing gas flows from the Churchie Field and other tight reservoirs in the Surat-Bowen Basin.

Tags: Mosaic Oil NL