Tripe Energy Ltd. (Triple or Company), a junior Australian oil and gas exploration firm, provided Monday the following update on the drilling activities on the Company's Aolong Joint Venture project in China's Heilongjian province.
The Joint Venture has now received the preliminary desorption core data results for this well. It is interpreted that the coal seams intersected in this well do not have sufficient gas content for the well to be commercial.
The coal seams were intersected at depths approximately in-line with pre-drill prognosis however it is interpreted that at the Bird Mountain location of this well, the gas has leaked out of the coal seams into the sandstone reservoirs above and below the coal seams and escaped to surface via faults in the area.
The sandstones interbedded between the coal seams in this area were as interpreted and it was hoped that this could have enhanced the gas recoverability and commerciality of the area but have in fact acted against us. The sandstones were, as interpreted, considerably more permeable than the coal reservoirs in the area and hence good gas flow rates were a possibility. Unfortunately, the gas that escaped into the sandstone beds was not sealed within these geological units and appears to have escaped to the surface via a proximate fault.
In summary, the sandstones were an excellent reservoir but without a sealing geological unit above, the original gas expected to be in place appears to have leaked to surface.
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