QGC said that the first four of five wells in the Berwyndale South project have been drilled and cased to a greater depth than was originally planned for the deeper Taroom coal interval. This has resulted in an additional 8 metres of coal, which takes the total thickness of coal intersected to an average of 33m.
"The initial results from the Berwyndale South wells in particular, have been outstanding. During drilling, gas influxes were experienced, and bottom-hole drill stem tests conducted on the Berwyndale South-5 well recovered substantial quantities of water containing high levels of gas, indicating very high permeability and gas content in the coal seams," the company said.
Over the next week QGC will conduct further extensive drill stem tests in the course of the final pilot well at Berwyndale South to comprehensively measure the permeability of the coal intervals.
QGC also said the first of the two pilots at Aberdeen in ATP621P has also been completed, with all five of the wells now placed on pump test. "These tests are progressing as anticipated, and stabilised gas flows can be expected in three to six months," QGC said.
The company told the stock exchange that based on preliminary results from both the Aberdeen and Berwyndale South projects, it is increasingly confident that pilot production testing over the next several months will confirm gas flows at commercial rates that will enable it to get independent certification of reserves early next year.
"We are particularly excited by what we have encountered during the drilling of the Berwyndale South pilot. The permeability and gas properties of the coals in this area appear to be exceptional. On the basis of what we have seen, Berwyndale South is a prime candidate for early development," said QGC managing director, Rob Crook.
QGC told the market each pilot project consists of a five-well development with associated gas gathering and water handling systems. "The wells will be operated together with the objective of efficiently dewatering a large volume of coal and measuring water and gas delivery rates under stabilised conditions," the company said.
"The pilot developments will be designed to demonstrate stabilised flow rates within about six months."
The company added that the intended outcomes of the proposed first stage of pilot developments are to confirm the ability of the Walloon Coal Measures to produce CBM at a commercial rate; convert QGC's CBM gas resource into independently certified reserves for marketing purposes; and determine the technical basis of design for full-scale field development.
QGC has 100% interests in both ATP 632P and ATP621P with potential resources of 900 and 4,300 billion cubic feet of gas respectively.
