Comet Ridge: Mahalo Field Work Recommenced, Australia

Comet Ridge said that completion operations have commenced at the Mahalo block in ATP 337P, north of Rolleston in the Bowen Basin, central Queensland.

This work follows the successful drilling of four Mahalo pilot wells in July this year.

The Mahalo field is located approximately 260 km west of Gladstone.

A workover rig is conducting completion operations at the previously drilled Mahalo four-well pilot scheme. Work commenced with the Mahalo 3 well late last week and then moved to Mahalo 4.

The workover rig is now moving to complete the Mahalo 5 and then the Mahalo 6 wells by running tubing and pumps in these wells, with the intention of setting all four wells up for production.

On a short flow test on Mahalo 3, before the rig was released, the well flowed water and also gas to surface. Mahalo 4 also flowed water and gas on a short test with the rig.

Comet Ridge Managing Director, Tor McCaul, said that the reported water and gas production from the first two wells was encouraging, but testing during the full pilot scheme will better define longer term productivity.

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

A drilling rig is expected to start moving into the field area later this week to spud the Mira 3 well. The joint venture is planning an eight-well programme for this drilling rig, including drilling four pilot wells at Mira and an additional four step-out core wells to further define the extent and quality of coal in the Mahalo block.

The objective of these pilot production projects is 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. Under the terms of that divestment, Stanwell Corporation Limited will fund Comet Ridge’s future expenditure at ATP 337P Mahalo up to $8 million. Stanwell Corporation has an option to purchase Comet Ridge’s equity in the Mahalo block, based on 2P reserves booked, under an agreement initially announced in September 2011.

Equity participants in ATP 337P Mahalo are Comet Ridge Mahalo Pty Ltd 35%, Stanwell Corporation Limited 5% (with an option to increase), Australia Pacific LNG 30% and Santos QNT Pty Ltd 30%.

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LNG World News Staff, December 10, 2012; Image: Comet Ridge