After only one week of production, Berwyndale South-9 is producing coal bed methane (CBM) at a rate of 240,000 cfd along with more than 2,500 barrels of water a day. The well incorporates a modified design, which has improved on the successful techniques used on Berwyndale South-8.

QGC Managing Director Richard Cottee said the production results confirmed the project was on track to achieve preliminary reserves certification in July 2004.

“The results from #9 are very exciting. Already this well has performed better than any other well at Berwyndale South in its first week of production and it may soon rival the performance of our best-performing wells at Argyle.

“We expected the refined design would deliver superior performance with this well. However, we had not expected such excellent production rates after such a short period,” he said.

Berwyndale South-9 was one of two production wells drilled and completed in the last month. The design for both wells was based on improvements from the design of Berwyndale South-8, isolating production to the Iona/Argyle seams and increasing access to those seams through under-reaming.

QGC has also completed the development plan for the 60PJ Berwyndale South Gas Project detailing the total capital costs and operating costs over the 15 years of the contract.

“Commercially, this project stacks up. Project economics show that Berwyndale South will provide competitive coal seam gas supplies, delivering profits over the life of the project,” said Cottee.

The Petroleum Lease for the project is in the final stages of approval, with the joint venturers in the process of lodging the security deposit for the project as assessed by the Queensland Department of Natural Resources, Mines and Energy (DNRM&E).

The DNRM&E has provided QGC with a draft Pipeline Licence. Once finalised, this licence will authorise construction of the seven kilometre lateral pipeline linking Berwyndale South to the Roma to Brisbane pipeline.