REFINE ENERGY TO OPERATE PL280 & PL18

REFINE ENERGY TO OPERATE PL280 & PL18

27th February 2019

Refine Energy is pleased to announce that it has entered into a Operations and Maintenance contract with Chelsea Oil & Gas and Brisbane Petroleum. The contract will involve Refine Energy restarting production from assets PL280 & PL18 in the Surat basin. These existing fields consist of a number of suspended oil producing wells with associated gas and water handling infrastructure.

Production has been shut in since 2010. Preliminary well integrity and civils works will begin in July 2019 prior to the wells being brought safely online. The objective being to revalidate the integrity and compliance of the asset ahead of restarting production within 3 months.

Production revitalisation will be supported by Refine Energy’s operations team and well intervention activities will be undertaken by the company’s heavy work- over rig.

The operating model for Refine Energy is to be compliant and at a low cost using the latest in recovery technology balanced with proven existing infrastructure to balance cost with revenue.

 

Refine Energy CEO, Adam Stepanoff was quoted as saying, ”We are looking forward to implementing low cost, compliant operating model into the Queensland market, these assets increase our current O&M portfolio and are our first East Coast assets”.

For further information, please contact Refine Energy at www.refineenergy.com.au

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

Another Step Forward for Refine Energy

Another Step Forward for Refine Energy and RCMA

DATE: 20 November 2018

By Lachlan Pressland

On 5 June 2018, Qld-based oil and gas management company, Refine Energy, signed a landmark deal with international commodities major, RCMA. The contract sees Refine Energy managing RCMA’s WA upstream assets, principally the Jingemia production facility, located near Dongara in Western Australia. The contract was one of the first of its kind for the oil and gas operator, Refine Energy.

Refine Energy specialises in management of Australian onshore oil and gas upstream exploration and production facilities and has developed their own in-house approach and management system to deliver a low cost operating model whilst assuring overall asset compliance with local, state and federal regulations.

The RCMA group is a global suppliers and commodities manager, dealing in a range of various commodities, including energy.

Refine Energy plans to review plant operations now and into the future to drive asset performance improvement across the broad areas of compliance, production, costs and integrity and is proud to operate such a promising asset.

CEO Adam Stepanoff is keen to improve the operations, saying,

“Refine Energy has implemented an efficient low-cost operating model for the Jingemia oil & gas assets which was business critical for such mature assets and was missing from the Perth Basin. Our objective is drive operating costs down below A$20/bbl. We believe at this level a number of what were previously suspended or non-economic assets become commercially viable.

RCMA too looks forward to making use of the experience and talent of the Refine team and has already been seeing the rewards of improved performance with a 40% reduction in plant OPEX, production increasing from circa 65 bopd to over 250 bopd. Already the asset is seeing a 40% reduction in plant OPEX and a stunning increase of production, exceeding 200% of total after only 4 months of operation. Further improvements are planned to boost production and reduce costs.

RCMA’s Director of Oil and Gas Chris Newport has said of Refine Energy,

“RCMA in early 2018 directed Refine to focus on improvement in the Jingemia field, and on plant and compliance performance through the use of best in industry practices, science and mature oil field efficient work practices, and Refine has delivered. We look forward to working with the Refine team in 2019”.”

This deal is the first of many steps forward for both companies and illustrates the innovative approach of the Refine Energy to asset management.

 

RCMA Jingemia

Operator : RCMA Australia /L14 JV

ASSET Jingemia

 

The Jingemia Production facility (JPF) is located 360 kilometres north of Perth in the Shire of Irwin. It is situated on the western side of the Brand Highway, approximately 15km south-south-east of the Dongara town site. The JPF is situated within Production Licence L14, on Untitled Crown Land (UCL)

 

The JPF is designed to:

  • Produce fluids from the Dongara Sandstone;
  • Separate produced fluids into oil, water and gas;
  • Treat the oil to export specification then load it into road tanker for transport off site;
  • Treat and re-inject the water;
  • Treat and utilise the gas as fuel.

The Dongara Sandstone is the hydrocarbon bearing formation, approximately 2500m below surface. Wells are either oil producers or water injectors and ongoing reservoir management dictates the rates of these wells.

The site comprise 4 oil producing wells and 4 water reinjection wells, production separation, conditioning, storage and truck loading export.

 

HISTORY

The project was originally developed by Origin energy and successfully operated between 2002 and 2012. Post 2012, the asset was placed in care and maintenance. In late 2017, the asset was recommissioned by Cyclone Energy Pty Ltd.

On the 9thApril 2018 RCMA was appointed Operator of the JPF located within Production Licence L14 (L14), in the northern Perth Basin, Western Australia (WA). This appointment takes over from Cyclone Energy who operated L14 prior on behalf of the JV.

On the 1st of June 2018, Refine Energy was appointed the O&M management contractor by RCMA.

IMPROVEMENT PROGRAM

At commencement of Refine Energy operations on 1 June2018, operations faced significant commercial, compliance and Joint venture challenges.  An immediate value  improvement program was instigated across the asset. This included;

  • Quickly establishing areas of non compliance and addressing those with DMIRS
  • A fast track cost reduction and organisational program to bring the asset back into profitability
  • Implementation of a number of small projects across the asset to reduce costs and drive value enhancements
  • A forward business plan to ensure future asset growth

RESULTS

Within 4 months, the following outcomes were realised;

  1. No incidents nor accidents
  2. Full Asset compliance with all WA regulations and Acts
  3. 40% reduction in opex
  4. 290% improvement in production
  5. Ability to reduced UTC to less than A$20/bbl
  6. Successful Safety, Environment and well integrity Audits by DMIRS