Initial production testing was suspended in September because of gas production from nearby coal exploration holes that had not been grout-sealed by previous coal license holders.
At the time of suspension LMG03 was producing more than 280,000 cubic feet a day despite the water level being at 80 metres below the surface – well above the levels of the coal seams.
Production restarted in December then was halted again due to equipment failure.
Now a new pump has been installed and the well has been placed back on production test with gas production results expected within the coming months.
The LMG03 well was completed across four coal intervals representing a net coal thickness of up to 23 metres and is the first of two production wells at the Gloucester Basin permit as part of the Phase 1 work program. The second well (LMG02)used "surface to in seam" lateral well technology.
The initial focus of the joint venture is on a five square kilometre area referred to as the Stratford Prospect, which has an estimated 90 petajoules of gas in-place.
Molopo and its joint venture partner, A J Lucas Coal Technologies Pty Ltd, are production-testing the Gloucester Basin prospect with the aim of supplying gas to the Sydney and Newcastle markets.
The Gloucester Basin permit is located about 100km north of Newcastle.
Interest holders in the Gloucester Basin project are AJ Lucas Coal Technologies Pty. Ltd, (75% & operator) and Molopo Australia Limited (25% & project manager).
