MORE WELLS, MORE OIL—A CASE STUDY OF RESERVES GROWTH IN THE KENMORE FIELD

Abstract

The Kenmore oil field in the Eromanga Basin of southwest Queensland was discovered in 1985. Since then, a further 32 wells have been drilled and more than 12.5 MMSTB of oil has been produced from the Birkhead Formation/Hutton Sandstone. Oil production over the last year has averaged 1,220 barrels per day totalling some 0.45 million stock tank barrels (MMSTB)Oil reserves in Kenmore were originally estimated at 2.2 MMSTB following the Kenmore–1 discovery well drilled in 1985. In the following 20 years, infill drilling, a 3D seismic survey, various reservoir studies and better -than-expected recovery efficiency, have steadily increased the ultimate recoverable reserves to the current estimate of 14.3 MMSTB.The growth of reserves at Kenmore is primarily attributed to better drainage of the complex reservoir framework within the lower Birkhead Formation resulting from recognition of the variable lateral connectivity of the reservoir. Due to the initial estimate of the ultimate field reserves being significantly smaller than now recognised and the resultant conservative drilling program, the economic value of the field was not maximised. This experience has implications for the ongoing development of the Kenmore field and suggests that other Birkhead/Hutton oil fields should be developed more aggressively to prevent history repeating itself.