DRILLING

Commercial gas flows in Mosaic's Downlands-4

OPERATOR Mosaic Oil says the Downlands-4 well in Queensland's Surat Basin has flowed gas at a rat...

The Sydney-based company yesterday said on cleanup, the well flowed gas at a stabilised rate of about 1.8 million cubic feet of gas through a half-inch choke with flowing pressure of 276 psi.

It had previously been completed and perforated over the Tinowon Sandstone reservoir interval 1835.8 to 1840.8 metres.

“This gas flow rate is well above the commercial threshold and engineering design is currently underway to connect the Downlands-4 gas discovery to nearby production infrastructure,” Mosaic chief executive Lan Nguyen said.

“This is a good result from the first well in our farm-out program”.

Downlands-4, in which Santos and Ausam Resources have a stake, is the first well in Ausam's PL 119 and ATP 471P Bainbilla Block farm-in Stage 1 program and is targeting the Permian Tinowon Sandstone gas reservoir.

The Tinowon Sandstone is about 5m updip from the Downlands-2 and Downlands East-1 producing wells, which are 1.6 kilometres to the southwest and 1.1km to the east respectively from Downlands-4.

Ausam will fund the first $1.5 million of the Downlands-4 well before contributing pro-rated interest for any additional costs.

It will be completed for production by Ensign Workover Rig 5 in the next four weeks.

Once Stage 1 is completed, interests in PL 119 – Downlands East will be Mosaic (52%), Ausam (26.9%), Santos (21.1%), while stakes in the Bainbilla Bock will be Mosaic (60.9%), Ausam (26.9%) and Santos (12.2%).

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