Blue Energy to establish water and gas flow rates at Monslatt pilot wells Tuesday, February 15, 2011 Coal seam gas company Blue Energy (ASX: BUL) has recommenced completion and testing activities on the Monslatt 4, 5P and 7 pilot wells in order to verify reserves from the current contingent resource base at Monslatt.
Production testing will establish water and gas flow rates in each of these wells over the coming weeks. Results will be verified by Netherland Sewell and Associates (NSAI).
Ahead of Tropical Cyclone Yasi, field operations were temporarily suspended, but Monslatt 7 has now commenced pumping activity to de-water the P Seam coal.
In Monslatt 5P, a series of short radius lateral wells have been drilled into the P Seam. A downhole pump and surface equipment have now been installed, and initial pumping operations to de-water the coals have now commenced.
Completion work on Monslatt 4 has now been finalised and has isolated the P Seam with a pressure gauge to investigate possible reservoir connection with the Monslatt 7 pilot well.
Also, the completion on Monslatt 4 includes an untested Goonyella coal seam which has been isolated from the P seam and completed for production testing. Surface equipment is being installed at Monslatt 4 at this time.
The Monslatt Block of ATP814P currently has 1,295 petajoules (PJ) of recoverable 3C contingent resource (as independently identified by NSAI).
The block also has a shale gas prospective resource of 3,630PJ of gas in place (also as independently identified by NSAI), and is located in close proximity to significant coal mine infrastructure with large energy consumption potential
BUL Price at posting:
10.5¢ Sentiment: LT Buy Disclosure: Not Held
