Coal seam gas exploration and production firm Comet Ridge Limited provided Thursday an operational update on the progress of the Mahalo 7 horizontal surface to in-seam well project in permit ATP 1191 (formerly ATP 337P) in Queensland, Australia. The Mahalo 7 horizontal well is being produced in combination with the Mahalo 6 vertical intercept well, via the pump in Mahalo 6.
Since the time of the last operational update in late January, the pump speed has been held constant while the gas rate has continued to steadily increase over this time with successive reductions in well bottomhole pressure. The gas rate has now passed 426,000 scf/d (standard cubic feet per day). The Production Operator is about to bring the vertical wells back on line, to contribute further to the total Mahalo pilot gas production. These vertical wells will be brought back on line individually, with sufficient time between, to closely observe well performance trends.
The Company continues to be very pleased with the upward gas rate trend from Mahalo 7. This is a short horizontal proof of concept well and therefore is only contacting approximately 1,181 feet (360 meters) of coal. A development horizontal well in this area should be much longer and in contact with significantly more coal with proportionally higher gas rates.
Comet Ridge Managing Director, Tor McCaul, said in addition to strong gas flow performance, the Mahalo 6/7 combination had produced relatively minor amounts of water – around 20 barrels per day, with the trend in water production now reducing. This would indicate that water handling capital and operating cost expenditure in a development scenario may be very low, further strengthening the Company’s view on the value of the asset.
The Mahalo project is located approximately 149 miles (240 kilometers) west of Gladstone in the southern Bowen Basin. The Project is located just 6.8 miles (11 kilometers) from an infrastructure connection to the Gladstone LNG (liquefied natural gas) market with significant gas supply requirements.
Equity participants in ATP 1191 (formerly ATP 337P) Mahalo are Comet Ridge Mahalo Pty Ltd. (40 percent), Australia Pacific LNG Pty Ltd. (30 percent) and Santos QNT Pty Ltd. (30 percent).
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