Shares in Metgasco (ASX:MEL) have jumped 7c as the company prepares to commence drilling its next generation coal seam gas pilot well at Corella P18, with expectations the well will spud over the weekend.
Following the announcement, shares in Metgasco were trading at 79c.
Corella P18 is designed as a dual lateral completion with a single vertical well intersect which will act as the water and gas offtake well.
The well will implement a number of design improvements identified from the Company’s previous CSG pilot drilling campaign which are intended to result in increased gas production rates. These engineering design changes include improved drilling and completion design, improved drilling mud systems and improved steering systems.
In addition, the Company’s objective is to achieve 2,000 metres of inseam drilling which will allow greater exposure to the coal face and provide an increased surface area for gas desorption. The design of Corella 18 is described below.
Managing director David Johnson said the well would be located close to the Company’s current lead CSG pilot well, Corella P11.
"The well is a single lateral well which is continuing to produce gas and water, with a gas rate of 240,000 standard cubic feet per day recently achieved," Mr Johnson said.
Metgasco is using Lucas Rig 150, which recently drilled the Company’s successful Kingfisher well for the drilling of Corella P18.
Further updates will be provided to shareholders as drilling progresses.