Panax Geothermal completes Salamander-1 testing

Panax Geothermal's Salamander-1 well at Penola, Australia (source: Panax)

Alexander Richter 5 Jul 2010

“Australian Panax Geothermal Ltd completes the Well Productivity Index (“PI”) testing programme of the Salamander-1 well, under the supervision of SKM New Zealand.  The PI testing programme comprises production testing as well as re-injection testing.”, so in a release by the company.

“All pressure, temperature and flow data (the latter is also known as spinner data and are collectively known as “PTS” data) collected during the tests, will now be analysed by SKM New Zealand. Final reports on the testing programme are not expected before the end of  July or early August, 2010.

Indications are that well flow or production rates have not materially changed following the completion of the acid treatment, completed by Halliburton in early June, 2010. This treatment was designed to remove skin coating the well wall, believed to be associated with residual mud filter cake.

Also, production rates achieved to date are lower than would be expected from the “most likely transmissivity” estimate of 6.7 Dm, as determined from the wireline logging data of the open hole section (2,900m to 4,025m) by Down Under Geo Solutions (“DUGEO”) in Perth in May, 2010 (please refer to ASX announcement dated 20 May, 2010).

It is expected that the PTS data collected as part of the completed PI tests will provide an interpretation of the transmissivities of the intersected target reservoir rocks as well as the status of the open hole section (e.g. presence of skin factor).

Until the test data have been analysed and interpreted by our expert advisors in this matter (SKM New Zealand), please note that Panax is not in a position to provide any further information on the above.”

Source: Company release via e-mail