Lacerta CSG pilot well drilling completed
Posted: 27 November 2006
Sunshine Gas Limited reported that the Lacerta Coal Seam Gas (CSG) Pilot well drilling has been completed.
Mitchell Drilling Rig 1 has cased and suspended the Lacerta 7 CSG pilot well over the weekend and has now been released from contract.
Preliminary indications from the initial four wells is extremely encouraging, with good free gas flows being recorded during drilling, together with accompanying strong water flows. This suggests both good gas saturation and permeability to be present in the area of this initial Lacerta CSG pilot.
The next phase of drilling activity on Lacerta will include additional core-hole drilling to delineate the extent of the Lacerta Field, followed by a second pilot well program in a location that will maximise potential reserves. It is expected that the next core-hole drilling phase will occur in late January (depending on rig availability).
The initial four Lacerta pilot wells now await completion, which will include the installation of down-hole pumping equipment and surface equipment installation to facilitate production testing of the wells. This process is expected to commence in late December, pending equipment and work-over rig availability. Production testing is therefore expected to commence in early January.
The de-watering and production testing process is designed to test the productivity of the Walloon Coal Seams in the Lacerta area and help to determine the economic viability of the resultant gas flow rates.
This process will also allow commencement of a reserve certification process for the Lacerta CSG prospect. Currently, Sunshine believes the Lacerta CSG prospect contains some 230 billion cubic feet (BCF) of contingent gas resources.
Posted by Richard Price, Editor, EnergyME.com
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