Comet Ridge (ASX: COI) has had an encouraging start to its pilot coal seam gas drilling program in Queensland’s Bowen basin with the first well intersecting positive thickness of coal with good permeability.
The Mahalo-3 well intersected about 8 metres of net coal, 7 metres in the main Castor-Pollux seam.
Flow testing has shown the Castor-Pollux has enough permeability to enable the well to be used for pilot production.
Mahalo-3 has been cased for production and the rig has spudded Mahalo-6.
Comet Ridge has a 35% interest in ATP 337P Mahalo.
Stanwell Corporation is funding Comet Ridge’s future expenditure at ATP 337P Mahalo up to A$8 million. Stanwell has an option to purchase Comet Ridge’s equity in the Mahalo that could see it paying Comet Ridge A$1 million for every petajoule of proved and probable gas reserves it has booked at the end of 2013.
Comet Ridge is drilling two four-spot pilots and an additional four core holes this year.
This is part of a pilot project aimed at converting contingent resources of up to 387 petajoules into reserves.
The joint venture may also carry out a second pilot project to expand the reserves base in the block.
The Mahalo-3 well intersected about 8 metres of net coal, 7 metres in the main Castor-Pollux seam.
Flow testing has shown the Castor-Pollux has enough permeability to enable the well to be used for pilot production.
Mahalo-3 has been cased for production and the rig has spudded Mahalo-6.
Comet Ridge has a 35% interest in ATP 337P Mahalo.
Stanwell Corporation is funding Comet Ridge’s future expenditure at ATP 337P Mahalo up to A$8 million. Stanwell has an option to purchase Comet Ridge’s equity in the Mahalo that could see it paying Comet Ridge A$1 million for every petajoule of proved and probable gas reserves it has booked at the end of 2013.
Comet Ridge is drilling two four-spot pilots and an additional four core holes this year.
This is part of a pilot project aimed at converting contingent resources of up to 387 petajoules into reserves.
The joint venture may also carry out a second pilot project to expand the reserves base in the block.
Proactive Investors
No comments:
Post a Comment