The permit, which will formally granted upon the company reaching agreement with native title claimants, provides Kimberley Oil with all hydrocarbon rights. The area contains coal bed methane (CBM) targets as well as conventional gas targets. Kimberley Oil specialises in CBM and says this is its principle target.
Commercial methane production at rates of up to 8 million cubic feet of gas per day was recorded during the 1970s from Walyering-1.
In 2001, a new well, Walyering-4, was drilled to test the possibility of reopening the gas field.
No substantial gas indications were found in the well at the objective conventional reservoir zones, according to Kimberley Oil. But well logs showed very strong gas shows from a coal-bearing zone from 2,850 to 2,950 metres in depth and about 450 to 550 metres above the targeted conventional gas reservoirs.
“The coal zone constitutes a valid CBM objective which may be successfully accessed through re-entering of Walyering-4 and using this well as a platform for a system of lateral drain development wells in the coal,” Kimberley Oil said.
“A major advantage for the project is proximity to infrastructure. The permit area is bisected by the Parmelia and Dampier-to-Bunbury natural gas pipelines. The Walyering-4 well is located about 200 metres from the Parmelia pipeline.
“With technological advances for this style of deposit, production from Walyering-4 could provide significant contributions to Perth’s gas requirements.”
