Arrow Energy says 18 of the 31 pumping wells at the Kogan North field in PL 194 are now producing gas. Meanwhile, QGC says its Berwyndale South project is on target to supply CS Energy with CBM gas several months before the July 31 deadline.

QGC said the project was on budget, with “very encouraging” gas flows recorded in recent weeks from new development wells. Berwyndale-18 produced more than 2 million cubic feet of gas per day without pumping.

The drilling program is also on track with 16 of the 25 wells drilled, and nine wells completed for gas production, according to managing director Richard Cottee.

“Heavy rain continued in the region throughout November and December, causing minor delays,” Cottee said.

“Despite the rain, the drilling cycle continued to improve with the last two wells – Berwyndale South-32 and 33 – achieving an average drilling cycle of less than six days per well.”

Berwyndale South has two 10-year gas contracts to supply both CS Energy and the Braemar Power Partners with four petajoules of gas per year each.

The project is held through a joint venture between QGC (90%) and Sentient Gas Australia (10%).

Meanwhile, Arrow said production from the Kogan North CBM field is continueing to increase. The two highest gas-producing wells to date, Kogan North-16 and 21, are so far producing 420,000 and 380,000 cubic feet of gas per day, respectively, and increasing.

Meanwhile, the final commissioning stage of the central gas processing facility to expected to start within the next few days, according to Arrow.

Kogan North will initially produce gas under a sales agreement with CS Energy, for 4PJ per year over 15 years.

But Arrow says the 240PJ of 3P reserves certified on the production licence meant additional gas sales were targeted.

The Arrow Energy and CS Energy joint venture each hold a 50% interest in the project. The Kogan North project development was mostly funded by Arrow's joint venture partner, CS Energy, while Australian Pipeline Trust paid for the gas processing and compression facilities.

Last November, Arrow said 2006 would mark the company's full transition from explorer to producer, as it delivers first gas sales from Kogan and starts development of its Daandine and Tipton West fields in the coming months.