Coal seam gas company Blue Energy (ASX: BUL) has updated activities in both the Galilee and Bowen Basins located in Queensland, confirming the presence of the target seams identified in the earlier Monslatt coring campaign.
In addition, the company has decided to withdraw from the Rossco discovery well and the Paprika and Cadenza farm-in wells in the Cooper Basin, South Australia.
At Galilee Basin (ATP813P) the Myross 1 core hole spudded on 3 May 2010 and is currently at a depth of 405 metres and drilling intermediate hole in the Jurassic section.
The well has a proposed total depth of 1,200 metres and will target the Permian Betts Creek and Aramac Coal Measure sequences. The well is located approximately 40 kilometres north east of the town of Aramac and is expected to take 3 weeks to drill.
At Bowen Basin (ATP814P) the Depco 29 rig has drilled Monslatt 5C stratigraphic hole to a total depth of 858 metres and has acquired wireline logs.
The company said the well has confirmed the presence of the target seams identified in the earlier Monslatt coring campaign and the wireline logs have identified approximately 40 metres of coal in the well.
Correlation of the seams intersected is consistent with Blue Energy’s current stratigraphic interpretation of the area.
The results of the Monslatt 5C well have also confirmed this area to be suitable to site the Monslatt 5 production pilot well (which will be drilled following the Monslatt 4 production pilot well).
The Monslatt 6C stratigraphic well spudded 10 May 2010 and is at a depth of 218 metres and running surface casing. Monslatt 6C is designed to establish stratigraphic control ahead of the proposed Monslatt 6 production pilot well.
The Atlas 3 drilling rig spudded the Monslatt 4 Pilot Production well at 01:00 hrs on 11 May 2010 and is currently at a depth of 202 metres with surface casing cemented and preparing to drill ahead the production hole to first testing point.
The well is designed to obtain permeability and production data from the Moranbah Coal Measure coals intersected in the Monslatt core holes and assist in conversion of the 3,532PJ Contingent Resource Estimate obtained from NSAI to 2P and 3P Reserves.
Blue Energy has recently conducted a review of a number of the company’s non-core conventional assets in the Cooper Basin, namely the Rossco discovery well and the Paprika and Cadenza farm-in wells, in respectively the Rossco, Paprika and Paranta Blocks in PEL 106.
Given the company’s focus on Coal Seam Gas, Blue Energy has, with the agreement of Great Artesian Oil and Gas Limited, the operator of PEL 106, decided to withdraw from each of these blocks without further obligations.