Otto Energy Limited (ASX:OEL) Commences Production at F5-ST Bypass Well
Production Performance Update
Otto Energy Limited (ASX: OEL) has successfully commenced production at the F5-ST Bypass well on 30 November 2024. Initial flowback data indicates an average production rate of 1.2 million standard cubic feet per day (MMscf/d) of gas and 4 barrels per day (bbl/d) of oil over the first eight days with a conservative choke setting.
On 12 December 2024, the production rate was increased using a larger 37/64 inch choke, achieving peak rates of up to 4.1 MMscf/d of gas and 17 bbl/d of oil, limited by platform compressor capacity. Future operational plans aim for production rates between 2.5 – 3 MMscf/d, optimising overall compressor output from both F1 and F5 wells.
Operational Insights
Prior to the F5 well’s production initiation, a wireline program was implemented to measure downhole pressure and fluid characteristics, suggesting successful pressure communication between the F5 and F1 wells. Otto Energy reports that initial indications suggest the discovery of a gas-bearing reservoir in the F5 well, with potential for an oil column at greater depths, although complexities remain in predicting future oil rates.
Executive Comments
Phil Trajanovich, Acting Chief Executive Officer of Otto Energy, remarked, “Early production from the F5-ST Bypass well has provided surprising results. We will continue to produce the well observing production rates and pressures so that future production can be more accurately predicted.” Further updates will follow as additional production data becomes available.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.