QGC’s latest status report also said there was provision to provide early gas under 10-year contracts with CS Energy and Braemar Power Partners.

“Despite heavy rain in the region, the drilling program is currently on schedule with 10 of 25 wells drilled and four wells completed,” QGC said.

The report showed that the four wells are currently on-line and flowing gas at rates well above the conservative banker’s case estimates.

Berwyndale South-36 and 37 were completed using an all-Walloon completion technique which accesses all six of the Juandah and Taroom coal seams, according to QGC.

“These are the first two wells at Berwyndale South to have been completed in this manner and the resulting gas flow rates have exceeded expectations,” the company said.

QGC reported that Berwyndale South-36 well has improved gas production to a weekly average of 199,000cfd, while Berwyndale South-37 is producing at a weekly average of 126,000 cfd.

The high gas flow rates are expected to reduce development costs by 10-20% as fewer wells were now needed to produce the required gas.

QGC reported that it has achieved an average drilling cycle of 6.5 days per well and is working to reduce this to five days per well.

The next stage for the project will include the delivery of pipe for the Windibri Export Pipeline to link Berwyndale with the Roma to Brisbane Gas Pipeline. Welding on the gas-gathering pipe is expected to be completed this week and the arrival of the first two reciprocating compressors is expected on the 18 December.