harrier flow rates, page-15

SF,

Thanks for your post.

Following is an extract from the Ballieu broker research report:

"High gas charge. The high gas charge in the Walloon Coal Measures will deliver favourable economics over the life of the Metgasco CSG project. With a high gas charge, wells will produce at or near their 30-day initial production rate for three to four years once production commences, unlike the more common steep decline rates seen in most CSG fields. The following chart shows the dispersion of methane content in Hunter Valley and Bowen Basin coals - with the great bulk of coals between 4M3/tonne and 10M3/tonne.

The high gas charge is illustrated by the gas production records of the Corella-11 CSG gas pilot well near Casino, which is producing from the Richmond coal seam. Unlike many fields where individual well decline rates of 30-50 percent in the first 12-18 months are normal, the production rate from CP-11 has been maintained at around 172,000 standard cubic feet per day for almost three years. The more sustained IP flow rate performance of the Richmond coal seam will deliver favourable field economics, with cash flow paybacks of less than four to five years for most wells."

End

Today's announcement notes "expecting [flow rates] to increase significantly".

In conjunction with the cost benefits associated with "high gas charge", it sounds to me like MEL is getting close to proving the commerciality of our coals.

Any comments would be welcome.