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The company said it had also contracted United Drilling Services to undertake about 1000m of coring in four holes – PGE-3, PGE-4, PHE-1 and PHE-2 – starting with Gordon’s PGE-3 well today.
Following the coring program, the wells will undergo drill stem testing to determine permeability, while the core samples will be analysed to determine gas composition and total coal gas content, the company said yesterday.
Purus managing director Richard Sandner told EnergyReview.net that the project was making good progress and early indications were promising.
“We know the [Killara] coals contain gas, but the real answers will come from coring and the drill stem tests,” he said.
“Permeability is the key here – this is what’s going to either make or break the project.”
At Gordon, Sandner said the company had so far recovered a 3.5m coal sample from the PGE-2 well and 4.1m from the PGE-1 control hole, which was drilled in 1996.
Sandner said he expected to receive initial results from coring, drill stem testing and logging for PGE-3 in the middle of this month and for PGE-4 in May.
Initial laboratory results are expected one month after the field program is completed, which would be around June, he said.
A good result for Purus at either the Gordon or Hawkesdale projects would be one petajoule per square kilometre, according to Sandner.
Gordon and Hawkesdale, located near Casterton and Warrnambool, respectively, are two of six projects identified by Purus for potential development in the Otway Basin.
If the initial drilling is successful, Purus plans to establish a trial gas field to determine the commercial viability of gas production through assessment of gas flow rates and other production parameters. Depending on the results, the board then plans to commission a bankable feasibility study for the full production and development of one CSM area, which could involve raising additional funds.
Commercial quantities of CSM could be brought to the market through the extensive network of natural gas pipelines in south-west Victoria, including the recently completed SEA Gas trunk pipeline from Port Campbell to Adelaide, which runs right through the permit areas.
