Metgasco hails NSW gas find Nov 30 2009 at 12:53 PM Updated Nov...

Metgasco hails NSW gas find
Nov 30 2009 at 12:53 PM
Updated Nov 30 2009 at 1:18 PM


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Gas producer Metgasco says it has found the first major gas deposit in NSW in more than a century.

Preliminary analysis of work at its Kingfisher E1 well, near Casino in northern NSW, showed multiple gas bearing sands from a depth of 1,058 metres to 2,067 metres, the company said.

“Kingfisher is a major new gas discovery," Metgasco managing director David Johnson said in a statement.

“This is the first significant conventional gas discovery in over a century of exploration in the state of NSW," Mr Johnson said.

He said further testing on the Kingfisher field would be undertaken during the next three months to determine the full potential of the field.

Metgasco said a minimum of 32m of gas bearing sands had been identified with further gas zones likely at greater depths.

Before drilling, early estimates for original gas in place at the field put the resource at 82 billion cubic feet (bcf), with a small chance it could be up to 831bcf.

“We think it is highly likely to be more than the 82, but we are in the process of doing our calculations now and we would hope to provide those details at the end of this week," Mr Johnson said.
Mr Johnson said that, before the field entered production, more seismic testing was needed, and new wells dug.

He said Metgasco was in the final round of obtaining approvals for a 30 megawatt power station, and within 18 months production wells from Kingfisher should be able to supply fuel for the plant.

Hartleys energy analyst David Wall said it was difficult to know the significance of the find at such an early stage.

"With these early stage announcements, you have no indication of porosity or permeability," Mr Wall said.

Patersons oil and gas analyst Scott Simpson agreed it was too early to determine the extent of the discovery.

"Pre-drill estimates put it at 82bcf, and a conventional discovery of that size that close to market would be significant, but it is expected to take some time and more work before we know," Mr Simpson said.

At 12.59pm, shares in Metgasco were trading up 15.5¢, at 60.5¢.
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Metgasco shares soar on gas test
by Edited by Jamie Freed and Sarah Thompson
Metgasco shares are trading nearly 25 per cent higher, at 76.5¢, after good results from the first stage of its reservoir testing program at its Kingfisher E1 well.

The initial analysis is that the field could be the largest conventional gas discovery in the history of NSW oil and gas exploration. The field could have a contingent resource of between 77 billion cubic feet (bcf) and 284 bcf.

The test, performed on only 5.3 metres of the total 30.3 metres of estimated net pay, shows that the potential remains for an increase in flow capacity.

The well produced a stabilised rate of 2.97 million standard cubic feet of gas a day in the 15-hour flow test.

Metgasco managing director David Johnson said the results confirmed its initial assessment that Kingfisher was a major discovery and its confidence in the under-explored Clarence-Moreton Basin in northern NSW.

He said Metgasco would continue testing in this zone of the well over the next week and would accelerate commercialisation opportunities from its mix of conventional and coal-seam gas in the Clarence-Moreton Basin.
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