MEL 0.00% 0.3¢ metgasco ltd

can't see it coming, won't see it going, page-23

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    This is Mr Lincoln Augustus, first second cousin of Holymagiman.

    I believe my first second cousin has already penned a few unintelligible words today. It is best to disregard his views as they are clouded by an unyielding haze.

    For those who do not know, I thought that I would just jot a few simple words on conventional wells.

    Once a natural gas or oil well is drilled, and it has been verified that commercially viable quantities of natural gas are present for extraction, the well must be 'completed' to allow for the flow of petroleum or natural gas out of the formation and up to the surface.

    This process includes strengthening the well hole with casing, evaluating the pressure and temperature of the formation, and then installing the proper equipment to ensure an efficient flow of natural gas out of the well.

    There are three main types of conventional natural gas wells.

    1. Since oil is commonly associated with natural gas deposits, a certain amount of natural gas may be obtained from wells that were drilled primarily for oil production. These are known as oil wells. In some cases, this "associated" natural gas is used to help in the production of oil, by providing pressure in the formation for the oils extraction. The associated natural gas may also exist in large enough quantities to allow its extraction along with the oil.

    2. Natural gas wells are wells drilled specifically for natural gas, and contain little or no oil.


    3. Condensate wells are wells that contain natural gas, as well as a liquid condensate. This condensate is a liquid hydrocarbon mixture that is often separated from the natural gas either at the wellhead, or during the processing of the natural gas. Depending on the type of well that is being drilled, completion may differ slightly. It is important to remember that natural gas, being lighter than air, will naturally rise to the surface of a well. Because of this, in many natural gas and condensate wells, lifting equipment and well treatment are not necessary.

    Conventional gas reservoirs largely consist of porous sandstone formations capped by impermeable rock, with the gas stored at high pressure and flowing to the surface spontaneously through production wells at a high-flow rate.

    CSG, on the other hand, is entirely infused into the coal and production requires the drilling of many wells with each one less productive than a typical conventional gas well. CSG wells are also typically shallower than conventional wells and cost much less to drill.

    So, conventional gas wells are more expensive to drill, and the chance of getting no gas is always there. Happily, Kingfisher E1 appears to have overcome this problem of no gas show with an initial gas flow of 900,000 standard cubic feet/day.

    It is also noted that the the report states that Kingfisher E1 has intersected the Walloon Coal Measures above the Heifer Creek sandstone, as expected, and that logging details of these measures are now being evaluated.

    It must be remembered that the Walloon Coal Measures are where Pure Energy, Arrow and Bow Energy’s Don Juan CSG Project have recorded very impressive 2P reserves. The family waits with much interest for results of coal seam gas flows from the Walloon Coal measures.

    It should be noted that the company has previously stated, after review of seismic, that:

    “At this stage of exploration, the Company has restricted its assessment of OGIP to the Heifer Creek Sandstone. The high-side estimate for the Kingfisher Field includes potential gas volumes associated with an additional 30 metre gas column that is inferred from pressure data to occur down-dip of the Riflebird E14 well. Further, up to 700 metres of gross sand potential exists in the Gatton and Ripley Road Sandstones below the TD reached in Riflebird E14 and in the adjacent Mackellar Prospect.”

    The Surat equivalent of the Gatton Sandstone is the Evergreen Formation, and this Evergreen Formation is where companies such as Bounty are targeting oil in Queensland.

    I draw your attention to this report by Bounty on 2nd Nov 2009:-

    *** “There are a number of high potential oil prospects in ATP 754P in the Triassic and Jurassic sequences. The Mardi Prospect (Evergreen Formation) has mean potential recoverable oil reserves of 350,000 barrels and is up dip from the older Showgrounds Sandstone hosted oil pools at Louise, Narrows and Eluanbrook. The Evergreen Formation is also the producing reservoir at the Alton Oil Field.
    In a similar fashion to the Alton Field, faults connect the Evergreen Reservoirs at Mardi with the Permian source rocks and the oil bearing Showgrounds Sandstone. All local migration paths lead to Mardi and offsetting wells indicate excellent reservoir can be expected from the Evergreen Formation (Boxvale Sandstone Member). “***

    Ripley Road Sandstone has as its Surat equivalent the Precipice sandstone). In the Surat Basin, at the Pickanjinnie Gas Field, the gas reserves are in the Precipice Sandstone and the Middle Triassic Showgrounds Sandstone of the Bowen/Surat Basin, with some small reserves in the Permian Tinowon Formation, at an approximate depth of 1500 m.

    All this does not guarantee that Metgasco will hit gas in the Gatton and Ripley Road Sandstone, but it is certainly food for deep thought.

    And taking about food, it is coming well nigh on to breakfast time on this wonderful Tuesday morning, and so I have to leave you all with the blessing of the Lord.
    MLA
 
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