WEEKLY DRILLING REPORT(as at 6.00am on 18 November 2004)Bellevue...

WEEKLY DRILLING REPORT
(as at 6.00am on 18 November 2004)
Bellevue #1R in ATP 610P
Spud Date 15 November2004
Permit ATP 610P in which QGC holds a 70.625% interest and Pangaea Oil & Gas Pty Ltd holds a 29.375% interest.
Objective This well is the third in the current coring program and the first in ATP 610P designed to intersect and collect for desorption and analysis all seams within the lower part of the upper (Juandah Coal Measures) and lower (Taroom Coal Measures) Walloon Subgroup. Bellevue #1 was originally cored in 2001 and the upper seams of the Juandah Coal Measures were cored and collected for desorption and analysis. The well is situated in the south of the tenement. After total depth is reached, the well will be wireline logged and tested to determine the permeability of key seams.
Current Operations Bellevue #1R is currently at a depth of 428.0m and coring ahead in the Taroom Coal Measures.
To date the well has intersected and collected 19 samples of gassy coal. During coring operations yesterday, the well took a “gas kick” and began to flow an undetermined gas and water. This was controlled and coring operation continued.
For information, please contact : Richard Cottee Managing Director Queensland Gas Company Phone : 07 3004 1000 Fax : 07 3012 8411
Kenya East #1 in ATP 648P
Spud Date 23 October 2004
Permit ATP 648P in which QGC holds a 68.75% interest and Pangaea Oil & Gas Pty Ltd holds a 31.25% interest.
Objective This well is the second in the coring program in ATP 648P designed to intersect and collect for desorption and analysis all seams within the upper (Juandah Coal Measures) and lower (Taroom Coal Measures) Walloon Subgroup. The well is situated in the north west corner of the tenement. After total depth was reached, the well was wireline logged and suspended for later testing to determine the permeability of key seams.
The well is the first application of a new well design for coring operations. The well is drilled and left in a condition at the conclusion of coring such that it can be re-entered, underreamed and completed as a production test well. This increases the efficiency and overall economics in exploration and appraisal efforts by reducing the overall number of wells in outlying pilot developments.
Current Operations Kenya East #1 has reached a depth of 761.7m (TD) and has completed wireline logging. The rig is waiting on weather to move to its next site.
The well intersected 21.5m of coal in the Juandah Coal Measures and 1.2m of coal in the Taroom Coal Measures and collected 29 samples of very gassy coal. The samples will be tested in coming weeks to determine gas contents.
The well has been suspended for later testing of coal seam permeability.
Argyle #9 in ATP 620P
Spud Date 26 October 2004
Permit ATP 620P in which QGC holds a 59.375% interest and Pangaea Oil & Gas Pty Ltd holds a 40.625% interest.
Objective This well is the first of five appraisal wells planned to form a new pilot 6 km to the northeast of the existing Argyle pilot. This well is designed to intersect all seams within the upper (Juandah Coal Measures) and lower (Taroom Coal Measures) Walloon Subgroup. After total depth is reached, the well will be wireline logged and completed for production testing of all seams of the Juandah Coal Measures.
Argyle #7 in ATP 620P
Spud Date 26 October 2004
Permit ATP 620P in which QGC holds a 59.375% interest and Pangaea Oil & Gas Pty Ltd holds a 40.625% interest.
Objective This well is the second of five appraisal wells planned to form a new pilot 6 km to the north east of the existing Argyle pilot. This well is designed to intersect all seams within the upper Walloon Subgroup (Juandah Coal Measures). After total depth is reached, the well will be wireline logged and completed for production testing of all seams of the Juandah Coal Measures.
Current Operations Argyle #7 reached a total depth of 405.9m on 5 November 2004 after intersecting 16.1m of gassy coal in the Juandah Coal Measures.
The well has been completed and should start production tomorrow using a pump powered by wellhead gas (approximately 20 MCFD).
Argyle #8 in ATP 620P
Spud Date 26 October 2004
Permit ATP 620P in which QGC holds a 59.375% interest and Pangaea Oil & Gas Pty Ltd holds a 40.625% interest.
Objective This well is the third of five appraisal wells planned to form a new pilot 6 km to the north east of the existing Argyle pilot. This well is designed to intersect all seams within the upper Walloon Subgroup (Juandah Coal Measures). After total depth is reached, the well will be wireline logged and completed for production testing of the Wambo, Iona and Argyle seams of the lower Juandah Coal Measures.
Current Operations Argyle #8 reached a total depth of 397.0m on 8 November 2004 after intersecting 17.2m of gassy coal in the Juandah Coal Measures.
The well has been completed and should start production early next week. This well indicated less free gas and more water influx and will commence pumping operations on LPG.
Argyle #10 in ATP 620P
Spud Date 16 November 2004
Permit ATP 620P in which QGC holds a 59.375% interest and Pangaea Oil & Gas Pty Ltd holds a 40.625% interest.
Objective This well is the fourth of five appraisal wells planned to form a new pilot 6 km to the north east of the existing Argyle pilot. This well is designed to intersect all seams within the upper (Juandah Coal Measures) and lower (Taroom Coal Measures) Walloon Subgroup. After total depth is reached, the well will be wireline logged and completed for production testing of the Macalister Upper, Macalister Lower and Nangram seams of the upper Juandah Coal Measures.
Current Operations As of this morning surface casing has been set to a depth of 63.7m and drilling operations will commence today.