www.blueenergy.com.au
Blue Energy is a rapidly evolving energy exploration company strategically positioned with abundant coal seam gas (CSG) assets throughout Queensland to meet the rising demand for cleaner power. Blue Energy has a vision to be Australia’s leading mid-sized coal seam gas exploration and production company with gas reserves in excess of 1 trillion cubic feet of gas within five year.
Blue Energy reports free flowing gas from Monslatt 6 well
Brisbane-based coal seam gas company Blue Energy (ASX:BUL) has updated drilling activities at the Monslatt Block within its fully owned ATP814P Bowen Basin project located in Queensland.
The company has engaged Titeline Energy Pty Ltd to conduct under-balanced (air) drilling operations on Blue Energy’s Monslatt 6 and 7 pilot production wells.
Monslatt 6 and 7 were previously drilled to the top of the target P seam (Moranbah Coal Measures) and suspended to enable the P seam to be drilled under-balanced.
In a statement the company said the Titeline Rig 2 has commenced under-balanced operations and has drilled out the P seam in the Monslatt 6 well. The operations on the Monslatt 6 well have now established free flowing gas from the P seam.
John Phillips, chief executive officer, said this confirms the fully gas saturated nature of the P seam in this location, verifies the adsorption isotherm results from core analysis in the Monslatt 1A core hole and suggests a fully gas saturated P seam coal across the majority of the block.
The recorded gas rate is considered very modest at this early stage (approximately 15,000 standard cubic feet per day), but the company said it is very encouraged by the results and demonstrates that gas will freely flow from the coals.
The well will now be completed to allow for an extended production test to be conducted, with produced gas and water monitored for rate and quality.
In parallel to this activity, plans are well advanced to drill a “surface to in-seam” style lateral well in the Monslatt Block.
This well will establish the length of horizontal section required for economic flow from the P seam. It will also maximise the potential for fracture intersection and therefore the chance of enhanced gas flow form fracture permeability.
Blue Energy is in advanced negotiations to secure a suitable drilling rig and directional drilling team to undertake this well. It is expected that the well will commence in early to mid September this year.
Reserve certifier Netherland, Sewell and Associates (NSAI) have indicated that once an economic flow rate has been established they are likely to be in a position to certify 2P reserves from the current contingent resources within the Monslatt block.
On August 6 Blue Energy announced the conversion of a significant portion of the initial 3C resource estimate for the Monslatt area to the 2C category.
The company considered this is a significant milestone as it validates the geological model developed for the area by Blue Energy and also provides the company with additional focus to establish reserves in an timely manner at Monslatt.
