Australia: Blue Energy Provides Update on ATP814P

 

Blue Energy Limited provides the following update on activities in the ATP814P permit.

Monslatt 9

The Monslatt 9 combination core and pilot production well which spudded 26 August, is currently at a depth of 608 metres and coring ahead in the primary target of the Moranbah Coal Measures.

To date, the well has intersected a full sequence of the Moranbah Coal Measures including several 3-4 metre thick coal seams at depths of 230 metres and 340 metres. Preliminary raw gas contents from these seams have yielded in the range of 14 to 22 cubic metres per tonne respectively. Gas samples taken have indicated methane contents of greater than 90%. These are in addition to the main P seam which has been intersected at 545 metres and is in excess of 3 metres thick.

The conformation of coals within the 600 meter depth cut-off used by for the Company’s reserve certifier Netherland Sewell and Associates (NSAI) in the southern portion of the Monslatt block in conjunction with conformation of gas contents should result in an increase in the Contingent Resource assigned. A data set will be forwarded to NSAI as soon as possible following completion of the well.

The well, which is being drilled by Ensign Rig 60, is located in the southern part of the Monslatt Block of ATP814P (see Figure 1) and is designed to establish the production potential of the Moranbah Coal Measures in this part of the block through the acquisition of core data. The well is also designed to enable it to be cased and completed as a potential pilot production well.

The well will be drilled to a planned total depth of 840 meters and will also assess the shale gas potential of the lower Moranbah Coal Measure sequence. NSAI have established the potential of the shale gas play in the Monslatt Block where gas contents of these shales have been recorded up to 10 cubic metres per tonne.

The Monslatt 9 well is expected to take 21 days to drill, core, cased and suspend, and following this the rig will move the Sapphire 4 pilot production well in the Sapphire Block of ATP814P.

 

Ongoing Operations

As previously advised the dewatering of Monslatt 7 and Monslatt 5 is continuing. Gas production has commenced in Monslatt 7 with flow rates currently being assessed. These flow rates are expected to increase as dewatering continues. Water production at Monslatt 5 has continued to increase and has reached the capacity of the pump installed. A work over is planned to commence shortly which will see a higher capacity pump installed and the dewatering process continue.

Achieving “commercial flow rates” should provide sufficient data NSAI to assign reserves 2P and 3P to areas within the Monslatt Block. The Monslatt Block is currently assessed by NSAI to contain 1,295 PJ of Contingent Resources (recoverable).

Planning is continuing for the stimulation and completion of Monslatt 4 and Monslatt 6 with work planned to commence during September with a work-over rig contracted to undertake these activities. On completion these works the wells will be placed on pump and the dewatering process commenced.

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Source: Blue Energy, September 7, 2011;