The JV has secured the work-over drilling rig for the Overston-1 production testing in ATP 645P in the Surat Basin, Southern Queensland.
The discovery is located 50km south-east of the Wallumbilla Gas Plant, the Romato-Brisbane Gas Pipeline and the Wallumbilla-to-Gladstone Gas Pipeline and is immediately east of the Churchie Gas Discovery.
Overston is considered to be part of the same Myall Creek, Churchie and Overston Gas Field complex which has seen Churchie achieve flow rates of up to 6 million cubic feet per day.
Estimated mean gas-in-place for the discovery is 137bcf over two intervals in the Tinowon and Showgrounds Sandstones, the predominant production reservoirs in the Surat Basin near Roma.
Upon achieving successful flow results Samson and SHG plan to acquire 200km2 of 3D seismic to fully delineate the extent of the discovery and to optimise the discovery for further appraisal and development.
The 3D seismic program is expected to begin in early September 2003. Samson and SHG plan to drill Overston 2 as the first appraisal well based on this 3D seismic.
Following the Overston 1 production testing operations, the work-over drilling rig will move to the Tardrum discovery (ATP 685P, QLD) to carry out work-over and production testing operations on the Tardrum 1 well.
Samson and SHG plan to spud the Tardrum 2 appraisal well in the second half of August to further test the Tardrum gas discovery.
The Tardrum gas discovery is located in ATP 685P immediately north of Santos' Scotia Gas Field development which began operations earlier this year. SHG secured the right to earn up to 100% interest in ATP 685P and the Tardrum gas field in February 2003 and subsequently brought Samson into this permit as part of the June 2003 farm-in. Gas-in-place resources are estimated at 109bcf.
Overall, up to six appraisal and exploration wells will be drilled in SHG's ATP's during the second half of 2003 targeting both conventional and CBM resources in proven producing areas.
These operations coincide with the recent agreement to purchase the Interstate Group of Companies which hold a 15% interest in the adjoining Roma Oil and Gas field.
