Australian company Ormil Energy has announced the commencement of drilling for Coal Seam Gas (CSG) in New South Wales.
Burragorang DDH1, will test Illawarra coal measures on the western flank of the Sydney Basin. The well will be drilled to a depth of approx. 560m through the base of the Illawarra Coal Measures. The well will not be fracced. The intersected coals will provide data on seam thickness as well as coal properties. Samples will be taken and desorbed in a laboratory to determine gas contents and gas compositions. The corehole will then be logged using wireline equipment, followed by Drill Stem Testing (DSTs) of the individual seams (if warranted) to determine permeability.
An independent assessment by Denver based consultants MHA Petroleum Consultants has estimated that PEL 454 could contain Contingent Resources (3C) of 1,639 BCF of gas in place within it's 168 sq km of area. Ormil has a farmin arrangement with Apex Energy that allows Ormil to earn up to a 50% interest in PEL 454.
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