Sydney Gas Company started drilling the Elizabeth Macarthur #1 well last week. The well is located within PEL 2 of the Camden Gas Project, 50 kilometres from Sydney.
Sydney Gas said it is a new technique to be applied in its continuous search for improvements in the production of coalbed methane from the Bulli Seam within the Illawarra Coal Measures.
In the USA, horizontal wells are known to have significantly increased gas production from coal seams since such wells provide access to a greater drainage radius of the coal seam, hence greater resource base per well.
Successful application of this technology will enable a reduction in the number of production wells to be drilled in the 300 well Camden Gas Project with the flow on effects including reduced drilling and completion costs, in areas such as gathering lines and access roads. SGC said this would lead to improved cost efficiencies and a lower impact on the environment.
Horizontal drilling is a method that enables the extraction of coalbed methane from the coal seam through a long radius drilling technique. A well drilled horizontally does not require fracture stimulation as in vertically drilled wells. This can reduce the cost of a production well substantially.
The technique involves the drilling of long, horizontal holes approximately 800 metres laterally within the coalbed and then intersecting a vertical well. The horizontal well then acts as a pathway for the gas to flow, draining a large area of coal. The gas flows through the horizontal well and is produced to the surface via a vertical production well.
Another project trying to get a similar technical approach off the ground is based in the Woolloongong area, and comprised of Sun Resources and the un-listed Apex Energy, led by former Mosaic Oil chief, John Carmody.
