(MENAFN - ProactiveInvestors - Australia) Icon Energy (ASX:ICN) and Beach Energy (ASX:BPT) are to start fracture stimulation at their Halifax 1 shale gas well in mid December.
A 15 stage stimulation will be carried out across all gas zones between 2,670 and 4,267 metres. This will be guided by the ongoing stimulation results from the Moonta 1 and Streaky 1 wells in PEL 218, which is wholly-owned by Beach.
Halifax 1 will be stimulated with a pumping rate capacity of 80 barrels of stimulation fluid per minute, potentially increasing fracture complexity and gas flow rates.
The company already has fracturing stimulation approvals in place from the Queensland government.
Once stable flow rates are achieved, Halifax will be flow tested for several weeks in early 2013.
Subject to successful flow testing a significant 2C contingent resource booking from Halifax 1 is expected to be available in first quarter of 2013.
Halifax 1 was drilled to a total depth of 4,267 metres and has found the thickest REM formation of 460 metres, a gas saturated zone of over 1,300 metres and gas discovery flowing at 0.2 MMscf per day in the Nappameri Formation.
Halifax 1 is only 2 kilometres from a gas pipeline making early monetisation a real possibility.