DRILLSEARCH Energy has restarted oil production from the Flax facility in the Cooper basin, producing its first ever oil as a project operator.
Production at Flax was suspended in late 2012 by then-operator Acer Energy.
Since Acer’s acquisition by Drillsearch, the field has remained shut in as part of a prudent reservoir management plan aimed at optimising future production and field recovery.
Drillsearch managing director Brad Lingo said the move followed significant technical work completed after the Acer acquisition.
“[This is] the first step in the company’s assessment of the long-term Flax redevelopment,” he said.
The Flax 3 well recommenced production on 16 December at an initial rate of 190 barrels of light volatile oil and 3.62 million standard cubic feet of natural gas a day on a 13/64” choke.
Following the restart of production, the Flax 4 and Flax 6 wells will also flow into the production facility.
Long-term production rates from the facility are yet to be determined and will depend on the installation of artificial lift and the addition of further wells, the company said in a statement.
Oil from the Flax facility was being pumped into storage tanks awaiting trucking and sales.
Drillsearch said the gas is currently being flared, though the company plans to use the gas to power generators at the facility and was looking at options for commercialisation through connection to the nearby Santos-operated gathering infrastructure.