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CSG drilling reports

Westside

Westside’s Schramm TXD 180 rig was mobilised to site within three weeks of the company’s assumed operatorship of the Meridian SeamGas assets.

WestSide has said that the workover program has already restored field output to January 2010 levels, equating to a production increase of 6.3 per cent since 1 July 2010.

The joint venture took control of the Meridian SeamGas CSG fields in Queensland’s Bowen Basin on 1 July 2010.

The initial drilling and work-over phase is expected to be completed by the end of the calendar year.

Eastern Star Gas

Meanwhile, Eastern Star Gas has announced updates for its CSG drilling operations in PEL 433, near the township of Gilgandra, northern New South Wales.

Dilly-1 has reached a total depth of 739 m. Judging from wireline logs run at a total depth, the well has intersected 15.5 m of net coal within the Black Jack formation.

Ellendale-1 has reached a depth of 405 m. Preliminary indications suggest the well has intersected 5 m of coal to date in the Black Jack Formation.

Eastern Star Gas is operator of both wells and holds a 65 per cent interest, with Santos QNT holding the remaining 35 per cent interest.

Blue, L&M, Metgasco, VicPet, QGC

Carla-3 was the continuation of a drilling program which will evaluate the Walloon coal measures and build on the certifiable recoverable CSG reserves for PL 171.

QGC is the operator of PL 171, while Victoria Petroleum holds a 20 per cent interest.

Metgasco will soon commence drilling of the Bowerbird-E01 CSG core well, located in PEL 13, to assist in the delineation of an interpreted CSG fairway in the Walloon coal measures.

Metgasco is targeting a depth of 700 m for the well, which will provide data on gas content to aid planning for the field’s development.

L&M Energy has said that it will know before Christmas whether its 173 petajoule Ohai CSG field on the South Island of New Zealand is commercially viable.

The company has extended a share purchase plan to enable more shareholders to participate in a capital raising program which will fund pilot testing at Ohai.

L&M Chairman Geoff Loudon said that seismic work on the field is due to be complete within two weeks, after which drilling will commence in late October 2010 to determine flow rates.

Blue Energy has now established free-flowing gas from its Monslatt-6 pilot production well, located in ATP 814P in Queensland.

The company said that the recorded gas rate of approximately 15,000 cubic feet per day is “very encouraging”?, and demonstrates that gas will flow freely from the coals.

Blue added that it is in advanced negotiations to secure a suitable drilling rig and team to undertake drilling of a “surface to in-seam”? lateral well in the Monslatt field, expected to commence in September 2010.

Netherland, Sewell and Associates have indicated that once an economic flow rate has been established, they are likely to certify 2P reserves in the Monslatt block.

Red Sky

Red Sky Energy has decided to drill the Carinda-1 well within its prospective Sandy Camp Project in northern New South Wales.

The well will be drilled as part of a three-well program, which includes the two Clarence Moreton wells.

The Sandy Camp Project is comprised of four 100 per cent Red Sky-owned permits: PEL 467, 480, 481 and 482. The Project encompasses the Coonamble Embayment, a geological feature which covers an area of 15,000 sq km and which has the potential for a substantial gas resource.

The Carinda-1 well is expected to spud in October.

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