As I have mentioned in a few of my posts here now, water is very much an issue and large risk here. So much so that management have now proven that they undersized the original pumps here because they didn't see that there would be so much water production (and I'm not just talking about producing the water from the coals, but the water filled sandstones that are in-between and connected to them).
Saying that the wells are more productive than thought could mean two things and they have not clarified which one in this announcement. Is the higher than expected water PI (productivity index) only coming from the coals? (which would be a good thing) Or is it because the water filled layers between the coals are producing more than expected? (which would be a very bad thing)
Given that the various downhole testing (permeability, etc.) would have been completed on the coal layers and not the water filled sand layers in-between, I would think it fairly safe to assume that this extra productivity is unfortunately not coming from the coals. Otherwise, why would they have undersized the pumps here when they already had sufficient data to estimate the productivity of the coals?
Not sure if they have been unintentionally unclear about this or if they simply do not know since they do not have the devices downhole that would be required to measure the production contribution per layer.
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