GLOUCESTER BASIN UPDATEAs anticipated, the gas production rate...

GLOUCESTER BASIN UPDATE
As anticipated, the gas production rate continues to increase in the existing pilot well Stratford 3 (LMG03). Over the past week, the production rate has increased and is now consistently flowing in excess of 1,050,000 standard cubic feet per day without the aid of a pump. The flow rate is expected to continue to rise as the fluid level (currently 93m above the bottom seam) is further reduced.
As at 19th December 2007, the first four wells in the Stratford Pilot have been successfully drilled and cemented. The final well in the program, Stratford 9, has been suspended until the New Year as a result of the ongoing wet weather which has impacted on site access
These wells were all subject to multistage fracture stimulation across a selected number of zones which will maximize the ability of the pilot to demonstrate production from different coals and depths:
Well Name
TD (m)
Coal Interval Completed (m)
Stratford 4
864.3
12.00
Stratford 5
599.0
17.75
Stratford 6
667.0
16.45
Stratford 8
780.0
12.70
Each of the wells has a number of coals that have not been completed, but which could be completed at a later time to add additional production.
In the first part of the New Year, these wells will be cleaned out, and once pumps are installed, the wells will be put onto production test.
The initial independent reserves certification for part of the Gloucester Basin has been delayed pending workload issues with the certifier and is now expected early in the New Year.
Lucas Energy Pty Limited holds 70% and is also the project’s operator. Molopo Australia Limited holds 30% of this Permit.