Bow to Boost Production at Bowen Basin

Surat-Bowen Basin
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Bow provided an update on exploration, appraisal and pilot production program in Bow's Bowen Basin CSG tenements.

So far this year, Bow operations have been delayed over three months due to wet weather, which resulted in limited access, unsafe conditions and unscheduled delays in our reserves certification. Regardless, Bow's aggressive drilling and testing programs scheduled over the current quarter are targeting to deliver upon Bow's continued reserve upgrades from early next year.

Early results at Norwich Park (ATP1031P, Bow 100%) confirm at least one large gas field Bow has identified three high potential CSG prospects within this block, namely, Vermont, Dysart and Norwich and has now completed 6 core holes of a 9 well initial CSG exploration program.

Bow has obtained an initial certification of a 2C (contingent) gas resource of 1,402 petajoules (PJ) from the Vermont CSG Field which is one of three CSG projects in the Norwich Park Block. The initial 2C resources are within the Fort Cooper and Moranbah Coal Measures. Bow is carrying out a permeability testing program during this quarter targeting conversion of the 2C resources into substantial 3P and initial 2P reserves in the Vermont CSG Field.

Gas contents, obtained to date in the Norwich Park Block, are high to very high ranging from 10-26 m3/tonne (Dry Ash Free) and are over 96% methane gas.

A second core hole exploration drilling rig is scheduled to commence this month to complete the Norwich Park initial exploration program by year end, weather permitting. Pilot production programs using another rig are scheduled early next year following similar
programs scheduled in the Comet Block.

Comet Block (ATP 1025P – Bow 100%) appraisal program targets commercial gas flows

The Comet CSG Bowen Basin Block has a prospective area of 470 km2 comprising the Blackwater CSG and the Comet CSG Fields. Bow has to date obtained 3P gas reserves of 2,253PJ and 2P gas reserves of 59PJ over areas within the Comet Block. Adjacent tenements are operated by BG Group and Arrow (50:50 owned by Shell and PetroChina).

To deliver commercial gas flow rates, Bow is in the process of trialing several completion techniques in the Blackwater CSG Field immediately west of the Blackwater Power station which is currently under construction and scheduled for commissioning early in 2011:

  • Two 'four spot,' vertical well, CSG pilots are scheduled to be fracture stimulated later this month. All eight wells have been drilled and cased and are awaiting fracture stimulation equipment. The fracture stimulations are designed to enhance the existing permeability and thereby improve fluid and gas flow rates. Fracture stimulation completions have resulted in commercial gas flow rates elsewhere in the Bowen Basin
  • Two lateral (horizontal) pilot wells drilling into an 8 metre Rangal coal seam target are also underway and planned for completion in November. Pre-lateral vertical exploration wells drilled into the target seam flowed gas to surface at low rates and a flow test of one of the vertical wells produced water at about 130 barrels per day suggesting good permeability.

These initial lateral wells are located about 3 kilometres south of the northern 'four spot' CSG fracture pilot. Lateral drilling and completions have been successful in obtaining commercial gas flow rates in adjacent tenements and other CSG areas of the Bowen Basin.


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