Comet Ridge (ASX: COI) has brought its second coal seam gas pilot in Queensland’s Bowen Basin on line that could potentially produce gas at commercial rates.
Initial water flow rates observed from the Mira Field are in line with the high productivity seen when the wells were drilled in January this year.
This indicates that the drilling mud system and completion timeframes employed at Mira have been effective.
Three of the four Mira pilot wells are on line and pumping water while the fourth well has yet to start production.
As is typical with most coal seam gas wells, the Mira pilot scheme is expected to pump water progressively over the coming months before sustained gas flows are observed.
Mira and the earlier Mahalo pilot schemes are designed to lift water from the coal seams, reducing the pressure in the area around the wells and allowing gas to flow to the wells. Achieving commercial flow rates will allow current gas resources to be converted into reserves.
The Mahalo Block (ATP 337P) has current Best Estimate Contingent Resources of 193 petajoules of gas.
Having two independent pilot schemes also allows the joint venture to gather valuable data on optimal well completion design for field development.
Dewatering at the Mahalo Field pilot is continuing with two wells flowing gas to surface.
Whilst the pilot scheme has produced water and recorded early gas flows, the wells on pump have not exhibited the high productivity consistent with the well tests that were conducted whilst drilling in July 2012.
This may lead the Joint Venture to undertake remedial stimulation work to improve the productivity of one or more of the Mahalo wells. Whilst this review is undertaken, the Mahalo pilot will continue to run and dewatering is set to continue.
The plan to book reserves at the Mahalo block later this year remains on track with the final core hole in the program to be drilled during the third quarter of 2013.
Partners in ATP 337P where both pilot schemes are located are Comet Ridge with 35%, Stanwell Corporation (5%), Australia Pacific LNG (30%) and Santos (ASX: STO) with 30%.