REFINE ENERGY COMPLETES WORKOVER PROGRAM

REFINE ENERGY COMPLETES WORKOVER PROGRAM      

1 February 2019

Refine Energy is pleased to announce that it has successfully completed a 2 well workover program for RCMA Australia Pty Ltd at the Jingemia Production facility asset, south of Dongara, West Australia.

RCMA is the Operator and holds a 93.7% interest in production licence L14 situated in the northern Perth Basin, 360km north of Perth. The permit covers an area of 9,835 acres. RCMA is the operator of the Jingemia field producing light oil from an excellent quality Dongara Sandstone reservoir. Production commenced late 2003 and to date 4.6 million barrels have been produced of the 12 million barrels in place. There are extensive surface facilities in place including oil storage, separators, piping, export and water injection facilities. The field has 4 oil wells producing at 330 bopd and 3 operational and 1 suspended water injection wells.

The well workover program was instigated by RCMA to boost oil production at the facility and address a number of well integrity issues. Since taking over asset operatorship for the L14 Joint Venture, RCMA has commenced a program of compliance, production enhancements and cost reductions that has seen the overall performance of the asset improve, markedly. The workover of the two suspended production wells, J10 and J12 within the Jingemia field, was the next step in driving the production upwards.  Both wells are oil producers and have a 7” production casing, 3.5” tubing, are fitted with jet pumps and an approx completion depth of 2.3km. This workover proved challenging as neither well had been in service for a number of years and both had a range of downhole issues.

Refine Energy provided a successful bid for the workover program and the contract was awarded in late November 2018. The scope of work was to manage the well intervention work which included developing the workover programs, updating safety management systems, gaining all necessary environmental, safety and other approvals required under WA regulation, removal of existing tubular and installation of new completion strings/tubular, reconfiguration and installation of jet pumps in BHA and procurement and delivery all materials and supporting services

The workover contract commenced in late November 2018 and completed successfully and to plan mid January 2019. Both wells have been brought back into production and have exceeded forecast expectations.

Speaking of behalf of RCMA, Oil and Gas Director, Chris Newport said, “RCMA view the J10 and J12 workover as a success and would like to thank Refine Energy for delivering this outcome. This program was difficult due to the pre-existing condition of both wells, nonetheless, Refine Energy responded professionally and quickly over the Christmas period to deliver the program as planned.”

This project marks the start of a new business stream for Refine Energy, expanding the capability of the Group into well intervention and workovers. Refine Energy’s CEO, Adam Stepanoff, said recently, “We are extremely pleased to have successfully completed the RCMA workover program. The program presented a number of challenges, both technically and logistically which we managed to overcome. It is also pleasing to see RCMA gain the production benefits. Our workover capability now forms a core part of our business. We can now offer cost competitive well intervention services  to the Oil and gas sector in Australia and we will be actively seeking to expand this business on the both the west and east coasts of Australia”

REFINE ENERGY COMMISSONS CRUDE FUEL CONDITIONING SYSTEM

REFINE ENERGY COMMISSONS CRUDE FUEL CONDITIONING SYSTEM

1 February 2019

Refine Energy is pleased to announce that it has successfully commissioned and tested a new crude oil conditioning system at the RCMA  Jingemia Production facility asset, south of Dongara, West Australia. The system treats and conditions raw crude oil, on site, to produce a liquid fuel that can be used as an onsite fuel in reciprocating engines.

RCMA is the Operator and holds a 93.7% interest in production licence L14 situated in the northern Perth Basin, 360km north of Perth. The permit covers an area of 9,835 acres. RCMA is the operator of the Jingemia field producing light oil from an excellent quality Dongara Sandstone reservoir. Production commenced late 2003 and to date 4.6 million barrels have been produced of the 12 million barrels in place. There are extensive surface facilities in place including oil storage, separators, piping, export and water injection facilities. The field has 4 oil wells producing at 330 bopd and 3 operational and 1 suspended water injection wells.

Refine Energy has developed a fuel conditioning system as a simple and cheap method of field  processing of light to medium crudes such that the product can be used as a directly in reciprocating engines without modification. The system is small, cheap, automatic and modular so that it can be rapidly installed in field applications to avoid the costly purchase and transportation of alternative fuels. It has many applications across oil production business where locally produced crude can be used as fuel source for pumps, compressors, generators and other equipment.

The Jingemia fuel conditioning unit is providing fuel supply to 2x 1000hp engine driven HPS units.

The system was designed and constructed by Refine Energy as a means of reducing the most substantial operating costs in small remote oil production facilities, namely imported fuel. The system functions by physically separating impurities such as waxes, solids, water and other impurities to deliver an end product that meets most diesel engine specifications. The system has the capability of being integrated into existing facilities or can be delivered as a standalone containerised module requiring no supporting services or infrastructure. The objective being to provide a relocatable unit that can be quickly deployed into the field to meet operator needs. The unit has been designed to meet Australia standards, is fully automated and has negligible safety and environmental impact.

Economic assessment of the technology has shown that the processing costs range between 3-5 cents  per litre of product leading to a payback period of approx 3 months based on a 20bbl/day unit. The unit size is scale-able with similar economies possible over a wide range of production rates.

Refine Energy CEO, Adam Stepanoff was quoted as saying, ”The prototype fuel conditioning unit installed at Jingemia proves that this technology works, is reliable and can deliver substantial operating cost savings to oil producers. Our plan now is to offer a range of modular fuel conditioning systems based on this new technology to the oil and gas industry”. We are able to provide the conditioning units for purchase or lease to suit the customer requirements and can arrange for delivery and commissioning, Australia-wide.

For further details on this technology, please contact Refine Energy at www.refineenergy.com.au