“This points to accelerated certification of gas reserves that will not only meet our major supply contract with Incitec Pivot but also exceed substantially our reserve and flow rate expectations,” said QGC managing director Richard Cottee.
Argyle-11 was completed only 50 days ago. Its performance vindicates QGC’s approach to multi-seam well completions, and supports the company’s belief in the potential of the Surat Basin’s Walloon coals for coal-bed methane production, Cottee said.
Argyle-11 was the only one of the five wells making up the Argyle East Pilot that was initially fitted with a larger pump. Progressively the other four wells have been fitted with the new pumps and the production rates have picked up markedly, with the Argyle East pilot yesterday flowing gas at an aggregate rate of 1.9 million cfd.
“If, as expected, the other four wells respond similarly to Argyle -11, the certification of new reserves over the Argyle field will be brought forward, and the increase in reserves is likely to be substantial,” Cottee said.
Currently, with no account taken of the Argyle East Pilot results, the Argyle field has certified reserves of 67 petajoules (PJ) of Proved and Probable (2P) Reserves and 169.7PJ of Proved, Probable and Inferred (3P) Reserves.
The Argyle field is about 15 km east of QGC’s Berwyndale South field where the design has also resulted in increasing gas flow rates and where 380 PJ of 3P gas reserves have already been certified.
QGC (59.375%) and Pangaea Oil & Gas Pty Ltd are joint venturers in ATP620P containing the Argyle field, which is contracted to supply Incitec Pivot Limited with 74 petajoules (PJ) of gas over 10 years starting from 2007.
