From memories I think you'll find that this is consistent with the area. I dug up a recent report from AOE just to give an idea:
The snippet is out of their quarterly which demonstrates what I'm talking about (can give you a comparison-last paragraph is of interest likewise the range of thickness from 6 to 50 metres):
The FCCM are estimated to contain in excess of 21,050 PJ (20 TCF) of gas and feature up to six separate coal seams with high gas saturation - each ranging in thickness between six and fifty metres. These coal seams have high gas saturation, but their banded nature has previously cast doubt about their ability to viably produce coal seam gas. The FCCM are not mined for coal so access to them for gas production is a simpler process than for the Moranbah or Rangal Coal Measures. Arrow began targeting the lowest seam in the FCCM in late 2008 using a three-well hydraulic fracture trial. These wells were recently brought into production and have started to flow gas after only a few weeks of water flow. It is early days for the testing of the FCCM as a major producing zone however the company is very excited about the initial results from these first pilot wells. Separately, within the Bowen Basin, Arrow has recently achieved some excellent flow rates from coals with permeability previously thought too low for gas production. In the deep section of the Moranbah Gas Project, where permeability is estimated to be around 1 milliDarcy (mD) or less, early gas flow rates of 200 gigajoules (GJ) per day have already been achieved in the initial days of production testing. A continued build up in production rates is expected from these wells. In similar testing at the South Walker Creek field on the eastern side of the Bowen Basin, where measured permeability is also low, flow rates in excess of 1,000 GJ (1 TJ) per day have been achieved. These advances in exploration and appraisal success together with further development well optimisation continue to increase our confidence in delivering large volumes of long-term, reliable gas supply to the proposed Gladstone LNG projects and in being able to convert Arrow’s vast contingent and prospective resource base into economically recoverable reserves.
WCL Price at posting:
52.4¢ Sentiment: LT Buy Disclosure: Held
