"The Argyle-11 well is now averaging gas flows of 1.18 million cfd, while Argyle-7 has recorded a weekly average of 502,000 cfd,” said QGC in a statement.
The weekly average for the whole pilot on a four seam completion basis is 647,000 cfd per day per well. With two of the wells configured to access all of the Juandah seams between them, there are effectively four wells addressing all seams.
“The increasing gas flow rates will directly impact the profitability of the gas sales contracts through reduced capital and operating costs” QGC’s managing director, Richard Cottee said.
“The level of project financing available through Rothschild is also related to flow rates, so every increase in flow rate contributes to optimising the financing structure for the projects,” he said.
“The performance of the Argyle pilots when combined with these early results from Argyle-12 give us confidence that we will be able to meet all of our contractual commitments to Incitec Pivot (74 PJ) from the Argyle Field”, said Cottee.
“This would widen QGC’s options for the supply of the gas to CS Energy and also to QGC’s proposed power stations at Chinchilla and Gibson Island (Port of Brisbane),” he said.
QGC (59.375%) and Pangaea (40.625%) are contracted to supply 74 PJ of gas to Incitec Pivot from ATP 620P over 10 years from 2007. QGC also has an agreement to supply 40 to 60 PJ to CS Energy over 10 years from 2006.
