Comet Ridge Updates on Operations at Mahalo Block in Queensland

Comet Ridge Limited, a coal seam gas explorer, provided Thursday an operational update for the Mahalo and Mira Pilot Schemes within the ATP 377P Mahalo Block, located approximately 149 miles (240 kilometers) west of Gladstone in Central Queensland, Australia. Comet Ridge currently holds a 35 percent equity interest in the block, which will increase to 40 percent following completion of the conditions under the Deed of Option with Stanwell announced March 19.

Mahalo Pilot Scheme

Following the completion of the under-reaming and jet wash stimulation on the Mahalo 3 and Mahalo 5 wells in January and February, the Mahalo Pilot wells have been continuously dewatering for most of the past three months. Mahalo 6 is being used as a pressure observation well, whilst the Mahalo 3,4 and 5 wells are being pumped to produce water, allowing the reservoir pressure to be reduced which in turn allows gas to flow. The JV adopted a strategy of intentionally dewatering slowly to protect the coal reservoirs.

Since bringing in the Mahalo pilot back on line in early March, gas production wells has been steadily increasing as dewatering has continued. The Mahalo Joint Venture is very encouraged by the current trend and will continue dewatering operations over the coming weeks with an expectation of continued improvement in gas flow rates.

Mira Pilot Scheme

As the Mira Pilot Scheme, approximately 8 miles (13 kilometers) southeast of the Mahalo Pilot, a series of pressure build up surveys were completed in the middle of May and the wells have now recommenced dewatering. Similar to the Mahalo Pilot Scheme, one well (Mira 2) is being used as a pressure observation well, whilst Mira 3,4 and 5 are being produced to dewater the reservoir and allow gas to flow.

As the Mira Pilot Scheme has only just come back on line for dewatering, pump seeds are being closely controlled. Initial gas production (from Mira 5) has been achieved and this is expected to improve as the reservoir pressure is reduced from ongoing dewatering operations.

Comet Ridge Managing Director, Tor McCaul said "with the build-up and interference testing now completed, both fields will be continuously produced to allow reservoir pressure to drop and gas rates to continue to develop on the current positive trend."


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