Ann: Glenaras Gas Pilot - Gas Production Update, page-43

Also, the below diagram from the GLL Underground Water Impact Report seems to suggest that it is very difficult to de-water the R2-7 coals given all of the water bearing layers that are mixed between the coals. It even states on their diagram that for this vertical well "Most production has come from the water zones with little drawdown of the coals". It looks like at the location of this well the R1 coal seam perhaps appears more isolated from the water bearing layers but who knows if further away from the well it will be as isolated? And would they ever only produce the R1 as per the diagram below and leave the gas in the other seams behind? The answer to that last question is no which is why they decided to drill the multi-well pilot and try to drain the whole area (including the water filled sandstones and coals).

I would be interested to know if the Schlumberger model included any recharge of the water layers between these coals. It is fine to say that the existing multi-lateral + vertical wells pilot is able to deplete all the R1-R7 layers but will they be able to replicate this development (horizontal+vertical drains at a very tight spacing) across the field when they develop it? Will it be commercial to drain all of the water from the in-between layers as well as all of the water in the coals before much gas is produced?

We'll wait and see for more results from this pilot for a better indication but if they have ruled out horizontal wells as a development, it is hard to see.



It's also important to note that they have only proven that all layers R1-7 are being drained effectively at the 17A well location... not at any of the others (yet).