GLOUCESTER BASIN PRODUCTION TESTING RESUMES Following a temporary halt, production testing of the LMG03 coalbed methane well at Gloucester has resumed.
Initial production testing was suspended because of gas production from three nearby coal exploration holes that had not been grout sealed by previous coal license holders. At the time of suspension LMG03 was producing in excess of 280,000 cubic feet/day of gas despite the water level being at 80 metres below the surface. The lowermost target seam in this well occurs at 405 metres. Prior to the resumption of testing, eleven nearby coal exploration boreholes were grout sealed.
The LMG03 well was completed across four coal intervals representing a net coal thickness of up to 23 metres and is the first of two production wells at the Gloucester Basin permit as part of the Phase 1 work program. The second well (LMG02) used the "surface to in seam" lateral well technology. The Gloucester Basin permit is located approximately 100km north of Newcastle and covers an area of 1,308 km and has over 200km of prospective coal measures. The initial focus of the two Joint Venture partners is on a 5km2 area referred to as the Stratford Prospect which has an estimated 90 petajoules of gas in-place
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