The two new wells – Tipton West Pilot-14 and 15 – are both designed for production. They are intended to provide further evidence that the pilot can be produced at economically viable rates, which would enable US-based reserves engineering consultants, Netherland, Sewell & Associates Inc to assign certified reserves to the project, Comet Ridge said.

TWP-14 and 15 will be drilled through the upper Walloon Coal Measures to a total depth of about 350m. The well will then be logged and completed over the Juandah coal measures’ Macalister, Wambo and Iona seams.

The well completion is a variation on the very successful TWP-13 completion, which has proven to be the most prolific gas and water producer in the pilot, according to Comet Ridge.

“The completion design modifications develop upon the latest completion methodologies that have proven effective at Berwyndale South and Argyle coal seam gas fields to the west,” the company said.

Both wells exhibited significant gas levels during completion and clean-up activities and contributed to gas and water surging in the adjacent TWP-13 well, according to Comet Ridge.

“The continued presence of elevated gas readings (higher than those recorded in previous wells) during the completion activities plus the interconnectivity of the producing zones in adjacent wells is extremely encouraging for the Tipton area,” the company said.

The joint venture (Arrow 80%, Comet Ridge 20%) has secured conditional gas sales contracts totalling 124 PJ (Ergon Energy 3.2 PJ per annum for 15 years, ERM Wambo power 4 PJ pa for 15 years and BP 15 PJ over 15 years) for the Tipton West field with first sales gas from the field expected in early 2006.