Australia: Dart Energy Gets Green Light to Drill Pilot Wells in PEL 458

Dart Energy Gets Green Light to Drill Pilot Wells in PEL 458

Dart Energy announced that it has received government regulatory approvals to drill its proposed pilot wells north east of Newcastle in PEL458.

The company has also secured the necessary land access agreements, is in advanced negotiations to secure a drilling rig and will commence site preparation in the coming weeks.

This approval is a significant step forward for the company’s business in Australia and progression of Dart’s first Gas Sales Agreement (GSA) in NSW with Maria’s Farm Veggies Pty Ltd (MFV).

Dart commenced its application for regulatory approval for the Fullerton Cove production pilot in September 2011, with the submission of a Review of Environmental Factors (REF). The REF has been reviewed and now approved by the Australian Federal Government Department of Sustainability, Environment, Water, Population and Communities, the Independent Expert Scientific Committee on Coal Seam Gas (CSG) and Coal Mining and the NSW Department of Trade and Investment Regional Infrastructure and Services (NSW Trade and Investment).

The pilot wells will target the prospective Borda and Medowie coal seams within the Tomago coal measures at depths between 650m and 700m using horizontal well drilling technology. Four lateral wells will each extend approximately 1000m into the coal seams giving a total of 4000m of in-seam access to optimise gas drainage potential. Each lateral will intersect a single vertical well and gas will be produced from the vertical well. Hydraulic fracturing will not be required.

Approval of the Fullerton Cove pilot is a further step towards first gas to the Maria’s Farm Veggies project as part of the GSA terms with MFV announced on 7 December 2011. It will also facilitate a greatly improved understanding of the gas resource in PEL458, potentially leading to reserves bookings and further gas sales.

Dart’s CEO Australia, Robbert de Weijer said “the approval of the Fullerton Cove pilot project is a major milestone for Dart in PEL458 and towards our commitment to both Maria’s Farm Veggies and sustainable gas supply to the NSW domestic market.”

LNG World News Staff, June 05, 2012; Image: Dart Energy