Comet Ridge to Bring Queensland CSG Well into Pilot Production

Comet Ridge has started completion operations at four previously drilled coal seam gas pilot wells at it Mahalo Block in the Bowen Basin, Queensland. 

Proactive Investors has reported that the workover rig has completed the Mahalo-3 and 4 wells and it now moving to complete Mahalo-5 and 6 by running tubing and pumps in these wells. Mahalo-3 and Mahalo-4 had both flowed water and gas during short flow tests.

Construction of surface facilities at the Mahalo pilot scheme, which includes tanks and flowlines, will start this month.

A drilling rig is expected to start moving into the field area later this week to spud the Mira 3 well, the first of eight well program consisting of four pilot wells at Mira and another four step-out core wells to further define the extent and quality of coal in the Mahalo block.

The pilot production projects are designed to demonstrate commercial gas flows in ATP 337P Mahalo, with the intention of achieving an early initial reserves certification.

Comet Ridge has a 35% interest in ATP 337P Mahalo, having divested a 5% interest in the asset in late 2011 to Stanwell Corporation in returning for funding up to $8 million in future expenditure on the block.

Stanwell has an option to purchase Comet Ridge’s equity in the Mahalo block, based on 2P reserves booked.