Mungi-22 will be the vertical production well for two new, yet to be drilled, medium-radius lateral wells, Mungi 22a and 22b.

Molopo said this well is being drilled to further develop the Mungi gas field and to build on the success of a previous horizontal well drilled at the field.

Before spudding, three exploration chip holes were drilled and logged to confirm the target seam thickness, depth, continuity and structure.

Molopo expects the data will provide valuable input to optimise the final design and location for the laterals wells, the drilling of which is expected to start in the next few weeks.

Upon commissioning, Mungi-22 will be connected directly to the existing Mungi gathering and processing system, with gas sold to Origin Energy under an existing gas sales agreement.

“The Mungi-22 well builds on the success of Mungi 2, where significantly greater productivity and slower decline rates occurred, compared to vertically fracced wells,” Molopo said.

“This demonstrated the superior performance of lateral completions in this area.”

An independent reserve report completed last September, credited the Mungi gas field with proven reserves of 21 petajoules, proven and probable reserves of 58PJ and proven, probable and possible reserves of 151PJ.

Interest holders in Mungi are operator Anglo Coal (Dawson) which holds a 25.5% stake, Molopo Australia (25%), Helm Energy-Australia (25%) and Mitsui Coal Holdings (24.5%).