The program involves three holes in Arrow's wholly-owned blocks: ATP 676P; ATP 689P; and ATP 683P Millmerran Block; and three holes in the farm-out blocks of ATP 683P.
So far, two core holes, Kogan North-1 in ATP 676P and Tipton West-1 in ATP 683P, have been cored and the Walloon Coals tested with another core hole, Dundee-2, drilled earlier this year in Arrow's 100% PLA 185.
After completion of coring Kogan North-1, Arrow said it was is encouraged by thick coal intersections (24 metres aggregate) and good permeabilities indicated by drill stem testing.
"Preliminary advice from Arrow's independent consultants Earth Data has indicated significantly higher gas contents for the coal samples than those received for Arrow's first core test at Dundee-2," the company said.
"The average gas composition in the Kogan North-1 coals was 98.4% methane, again indicating minimal gas treatment requirements to bring the gas to pipeline specifications."
As for Tipton West-1, Arrow said a total of 29.5 metres of coal was intersected in the well with preliminary estimates indicating that gas contents are higher than the previous two cored wells (Kogan North-1 and Dundee-2). "Surging water flows are interpreted gas pressure drive and high gas contents in the coals provide encouragement for the coal seam methane potential in this area," Arrow said.
Tipton West-1 is located on a structural high identified from the interpretation of Arrow's Horrane seismic survey, acquired at the end of 2000. Arrow said conventional objectives are evident in the Jurassic aged Hutton and Precipice Sandstones below the Walloon Coal Measures and Tipton West-1 is currently drilling ahead to test the Hutton Sandstone.
Following the completion of Tipton West-1 Arrow will drill Carn Brea-1 and Mt Haystack-1 in the Bowenville and Oakey Blocks respectively as part of the Anzoil farm-in, operated by Arrow.
The final wells in this program will be Glenburnie-1 (ATP 683P Millmerran Block) and Kendor-1 in ATP 689P. Arrow is locating these wells in positions favourable for water disposal and the sale of gas from any future pilot gas production programs.
Arrow has also commenced procurement of the necessary equipment for the first CBM gas pilot production test and has requested tenders from drilling contractors.
Arrow's schedule provides for drilling the five wells required for the pilot in the ATP 676 / PLA 185 area by the end of this month with the CBM pilot production scheduled to commence in September. Gas production pilots are planned for Dundee in PLA 185 or Kogan North in ATP 676P and one pilot in ATP 683P.
Arrow also commenced the feasibility study on the supply of 4 petajoules (PJ) per year to CS Energy for 15 years from PLA 185 and ATP 676P, near Chinchilla. The feasibility study will also address the potential for the supply of up to 8 PJ per year to third parties.
"Arrow is liasing with CS Energy and its consultants in respect of the proposed central gas processing facility and lateral pipeline to the Roma to Brisbane Pipeline. Arrow expects the feasibility studies to be complete by December 2002," the company said.
