The development wells will include an initial mini-pilot designed to prove up gas reserves in the underlying Taroom coal seams.

So far, the certified proved and probable (2P) gas reserves at Berwyndale South are confined to the Juandah coal seams, and take no account of gas from the underlying Taroom coal seams.

The Lauren-3 well, located some 15km to the south-east, was a Taroom-only well that flowed at a seven-day average of 770,000 cubic feet per day – a very commercial rate.

QGC is optimistic that this result can be replicated at other Taroom wells at Berwyndale South, according to managing director Richard Cottee.

“If economic quantities of the gas required at Berwyndale South could be recovered from the underlying Taroom coals, fewer development holes would be required for the gas field development, and capital costs would be substantially reduced,” Cottee said.

“Because of the impact on the profitability of the project, it is important to evaluate the Taroom gas option through this mini-pilot before embedding the current development design into the overall development.

“If gas from both the Juandah and the Taroom coals could be tapped from single wells, the recoverable gas per well and the 2P reserve base at Berwyndale South would be increased.”

Drilling will commence today on the Windibri property owned by the Berwyndale South joint venture, which will also be the site of the gas field gathering station and compressor unit.

The Berwyndale South Gas field is in PL201, in which QGC has a 90% interest and the Sentient Group 10%. Lauren-3 is in the adjoining ATP 620P permit, held jointly by QGC (59.375%) and Pangaea Oil & Gas Pty Ltd (40.625%).