The program includes establishing a confined well production pilot, by drilling and completing eight new wells nearby the producing Bibblewindi-1, operator ESG said.
This is designed to accelerate dewatering of the 6.5-metre thick Bohena coal seam at Bibblewindi, by achieving commercial production rates faster than would be possible for isolated, unconfined wells, or wells spaced further apart, according to ESG.
Commercial flow rates are expected in the fourth quarter of next year, according to the company.
The program also includes drilling a pressure monitor well outside the production pilot, to establish whether the coal reservoir and reserves estimate extends beyond the original area.
“The purpose is to demonstrate pressure communication between wells spaced further apart than that being used for the 8 new production wells,” managing director Dennis Morton said.
Upon successful completion of the work program and production tests, all production wells within the Bohena Project Area, including the eight new wells, are intended for connection to the Wilga Park power station for electricity generation and sale. This will be subject to the joint venture agreeing on pricing and gas gathering expenditure, ESG said.
Currently, the venture has a total of five unconfined wells on production test at various stages of the de-watering process. The wells have produced at a combined rate of up 300,000 cubic feet of gas per day.
“Water and coal seam gas production rates achieved to date support the presence of a significant commercial accumulation of coal seam gas within the Bohena Project Area,” Morton said.
“Several of these wells are scheduled to undergo work-over operations, as is usually required for coal seam gas wells, designed to maintain and further increase, gas production rates.”
Shortly after fracture stimulation late last year, the Bibblewindi-1 well was placed on continuous production test, which supports evidence of a highly permeable coal seam with high water and increasing gas production rates, ESG said.
The closest well, Bohena South-1, is about 7km north of Bibblewindi-1.
Partners in the project are: Gastar Exploration Limited (35%), Eastern Star Gas Limited (operator and 32.5%) and Hillgrove Resources (32.5%).
