The Sydney-headquartered company told the ASX that it had upgraded its contingent gas resource estimates for PEL 16 after obtaining further gas content isotherm data as part of a recent pilot production drilling program.
Metgasco had previously estimated gas contents to be 5.14 bcf per square kilomtre, for total reserves of 1.05 tcf. The reassessment had improved the “average gas in place” to 7.9-9.9 bcf/sqkm, or 3.8 tcf to 4.8 tcf.
In addition, recent evaluation of re-processed seismic extended the area of Metgasco's resource base.
Earlier seismic evidence showed coal continuity over approximately 33% of the tenement area, whereas the re-processed seismic confirmed the presence of the Walloon Coal Measures over an additional 30% of the tenement.
The company said it did not have any seismic or drill hole information for about 40% of PEL 16, so no contingent gas resource had been inferred for this part.
Metgasco managing director David Johnson said the latest results demonstrated the significance of the Walloon coal measures in the NSW portion of the Clarence Moreton basin.
"As one of the first companies to begin exploring for coal seam gas in the Walloon Coal Measures, Metgasco has secured a land position in a strategic location that offers opportunities for several decades of growth,” Johnson said.
Metgasco holds 100% of PEL 16 and is appraising the gas production potential of the Walloon coal measures that have been the subject of successful exploration and development activity in Queensland over the past four years.
