Ann: Glenaras Gas Pilot - Gas Production Update, page-45

I would be hanging out to see if they can effectively de-water the coals (ideally without also de-watering all the water filled sandstone layers that are interconnected with the coals) at a development spacing that is scalable to the whole field (this pilot design is clearly not scalable for a full field development - and that's ok because this pilot will accelerate results and provide good dynamic data inputs to the Schlumberger modelling). I have my doubts, but happy to be proven wrong by the wells in time.

They can try to packer off the sandstone layers in the wellbore but it will not be perfect as the sandstone is still touching the coals away from the wellbore so they will still be re-charging the coals with water as they are being produced either way. It makes for quite a complex development with a lot of water to be produced.

I'd be looking to see from this pilot that after 12-18 months of continuous production that all of the wells breakthrough with gas and perhaps show a peak rate at 18-24 months (not just the wells in the centre - which at this spacing should really be breaking through with gas after ~6 months... if they didn't have to de-water all of the sandstone as well as the coal).

The one handy thing is that the salinity of the water in the sandstones is quite low, and since it's mixed with the water in the coals, it makes the mixture overall very low as well. So at least they shouldn't need much CAPEX allocated to water treatment in a development.