Comet Ridge (ASX: COI) is witnessing early promising coal productivity from an extended production test being carried out on its Gunn-2 well in ATP 744P in central Queensland.
The well is flowing at over 120 barrels of water per day from a single coal interval with minimal pressure drawdown on the coal, indicating that this coal has substantially more flow capacity.
To date the downhole pump and other equipment is performing as designed with no mechanical or electrical issues.
Comet plans to conduct the extended production test, which began last Friday, on Gunn-2 over a number of months.
The objective of the extended production test is to provide information to test the completion methodology for the full pilot scheme and to obtain good quality water samples from the Betts Creek coals.
On completion of the testing, Comet will finalise the design for the pilot scheme in the Gunn Project Area with the intention of achieving independently certified gas reserves, which would be available to power, LNG or domestic gas markets.
Gunn Project Area
The Gunn Project Area lies immediately west of a number of the very large proposed Galilee Basin coal mines which are located on the eastern basin edge.
Eight exploration and appraisal wells have been drilled in the Galilee Basin.
Five of these wells are in the Gunn Project Area and Farm-in Area and confirm a very large, independently certified gas resource.
The Gunn-2 well was drilled in October 2012, intersecting a total net coal thickness of 16.2 metres.
Downhole analysis confirmed the presence of significant natural fractures in the coal.
Four separate coal intervals were individually flow tested with all zones demonstrating good to excellent productivity.
The Gunn Project Area is estimated to contain recoverable gas over an estimated area of around 1,865 square kilometres.
An independent resource certification undertaken in November 2010 estimates a potential 1,870 petajoules of Contingent Resource and 597PJ of Prospective Resource (midcase) in the project area.
Gunn-2 is part of a three well program carried out in 2012. The second and third wells in the 2012 drilling program, Schmitt 1 and Cernan 1, have been suspended for use as future production wells.
A pilot scheme, which includes drilling several additional wells in the Gunn field area, will be designed from the results and data obtained from the extended production test and is expected later in 2013.
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