This is Mr Lincoln Augustus , first second cousin of Holymagiman
Just thought you fine folk may be interested in reading some little bits and pieces on PEL 13 and PEL 426 while you are sitting in the sun at the beach in Bodhi
From EASTERN STAR ANNUAL REPORT 2005
Clarence Moreton Basin
PEL 13 (earning 85%) PEL 426 (earning 85%)
In July 2004 the Company completed negotiations to acquire an 85% working interest in each of PELs 13 and 426, together covering an area of over 6,300 square kilometres in the New South Wales portion of the Clarence Moreton Basin, surrounding Grafton. The interests are being earned by the Company completing work programs comprising seismic reprocessing and new seismic acquisition.
The Clarence Moreton Basin has a thick section of Jurassic through Triassic sediments which are prospective for gas in conventional sandstone reservoirs, and for coal seam gas in both Jurassic and Triassic coals.
Earlier exploration in the areas identified a number of interpreted structural closures, some of which have tested gas at rates of up to 500,000 cubic feet per day from conventional sandstone reservoirs. These flow rates are considered encouraging in view of the fact that the reservoirs are very likely to have been damaged by the drilling practices used at the time. Northern New South Wales is an area of rapid population growth, and it is believed that even modest gas discoveries could be readily marketed, either directly into the regional centres of Grafton, Lismore, etc., or by generating electricity for export into the grid.
FROM METGASCO ANNUAL REPORT 2005
Water from the Casino project has been tested and is classifi ed as being of suitable quality for consumption by stock (slightly to moderately saline).
Metgasco holds 100% rights to PEL16, which is a tenement covering 833 square kilometres.
FROM EASTERN STAR ANNUAL REPORT 2006 Clarence Moreton Basin PEL 13 PEL 426
During the year the Company entered agreements whereby it could acquire an 85% working interest in each of PELs 13 and 426 by completing work programs comprising seismic reprocessing and new seismic acquisition. PELs 13 and 426 together cover an area of over 6,300 square kilometers in the NSW portion of the Clarence Moreton Basin, surrounding Grafton.
Operations in PELs 13 and 426 would involve at least new seismic acquisition in State Forest areas akin to those in the Gunnedah Basin, where the NSW State Government has legislated land title changes detrimental to exploration. In order to avoid any such uncertainties, the Company elected not to complete its farm in work programs, and so not to earn any interest in these licences.
METGASCO ANNUAL REPORT 2006 In January 2006, the Company entered into a Farm-in Agreement with Molopo Limited on PEL 13, a tenement adjacent to PEL 16. PEL 13 contains the Walloon Coal Measures which are the subject of investigation on PEL 16.
The Company is pleased to report that the hole intersected a gross thickness of 22 metres of methane bearing coal in eight seams of greater than 1.5 metre each.
METGASCO 2007 ANNUAL REPORT
In April 2007, the Company announced it had entered into a farm-in with Molopo Limited on PEL 426 located to the south of PEL 16 in the ClarenceMoreton Basin. The farm-in acreage of over 3,450 km comprises the southern end of the ClarenceMoreton Basin and has considerable potential for conventional oil and gas as well as coal seam gas from both the Walloon Coal Measures and the Triassic Nymboida Coal Measures.
Previously the area has only been lightly explored. However, one well, Grafton No 1, which was completed in 1902 was still flowing gas when tested in the 1950s.
METGASCO ANNUAL REPORT 2008
The well, Riflebird-E14, intersected a gross gas column over 49 metres commencing at 1,240m. The drilling rig in its current configuration was only capable of drilling to 1,296 metres so the well was terminated at this depth. It could well be that, in addition to the gas column identifi ed to date, further reservoirs exist beneath this.
During the year, the Company completed 168km of new 2D seismic located in PELs 13, 16 and 426. The seismic program has provided valuable new information on the Walloon Coal Measures, where our CSG activities are focused, as well as on units deeper in the stratigraphic sequence where potential exists for conventional accumulations of oil and gas.
PAGE 11 OF THIS 2008 ANNUAL REPORT CARRIES A VERY GOOD DIAGRAM OF EXISTING GAS PIPELINES IN EASTERN AUSTRALIA
MOLOPO ANNUAL REPORT 2009 Drilling activity focussed on the assessment of CBM targets in the Walloon Coal Measures along the shallow western margin of the Clarence Moreton Basin with the drilling of exploration well Wyan E1.
Wyan E1 was completed in June 2009 to a total depth of 702 metres. The hole confirmed the presence of coal seams in the Walloon Coal Measures, albeit thin and poorly developed. The Walloon Coal Measures were intersected at predicted depths, but coal development was poor, comprising mainly numerous thin and banded coal seams.
Free gas shows were observed during drilling. Two open hole flow tests of about eight hours duration each were conducted at Wyan E1. The first flow test was conducted over the interval from 402 to 456 metres in the upper portion of the Walloon Coal Measures containing the Richmond coal seam. A modest flow of approximately 120 Mscf/d through a 24/64 choke was achieved. On reaching total depth, a second flow test over the entire Walloon Coal Measures interval achieved a flow of approximately 175 Mscf/d at the end of the test period. Logging of Wyan E1 to total depth was prevented by a bridge at 547 metres. The well remained suspended until a rig became available to clear the bridge and complete logging to total depth. The well remains suspended pending a decision on additional flow testing.
Metgasco drilled exploration well Orara E1 to fulfil its farmin obligations. The hole aimed to evaluate the presence and development of the Walloon Coal Measures in the southern part of the Clarence Moreton Basin and the conventional gas potential of the Heifer Creek Sandstone below these coal measures. Orara E1 reached total depth of 680 metres in January 2009 and confirmed the presence of poor coal development comprising mainly numerous thin and banded coal seams in the Walloon Coal Measures.
A short duration production test was run with gas flows of approximately 100 Mscf/d recorded. Further testing of this well during the March 2009 quarter could not confirm the initial 100 Mscf/d flow which had been previously observed during an off-bottom test. The well was subsequently plugged and abandoned.
METGASCO ANNUAL REPORT 2009
As a result of the new 2D seismic program, Metgasco drilled exploration wells in PEL 13 (Wyan E1) and PEL 426 (Orara E1).
Both wells successfully flowed gas and, in the case of Wyan E1, the well flowed at stabilised rates of 175,000 scfd. This is an extremely encouraging result as: the well was drilled using air instead of fluid this is a very cheap and cost-effective way of drilling and offers a suitable method for reducing cost; and gas flows occurred without any recorded water flows the cost of managing water production from coal seam gas wells can be significant, so the absence of any water can confer considerable cost savings.
Metgasco is excited about the potential for development of a dry gas play. The recently drilled Orara and Wyan wells demonstrated good gas production rates without any water flows. This is an unusual feature for coal seam gas wells as they generally need to be dewatered before they will flow gas. One of the most successful coal seam gas developments globally in the last 10 years is the Horseshoe Canyon play in Western Canada. This play supplies most of the coal seam gas produced in Canada and to date there have been more than 14,000 wells drilled. The key reason for its success is that the Horseshoe Canyon coal seams produce gas but very little or no water. Metgasco plans to follow up on its Wyan and Orara wells in the near future to see if the results are repeatable over a larger area. If successful, this will give the Company new areas to consider for development as it continues to open up the ClarenceMoreton Basin for coal seam gas.
Wyan E1 Gas Discovery well PEL 13 75% interest Target full vertical section Vertical well drilled to evaluate coal development on the western margin of the basin. Immediate free gas flows to surface of 175,000 scfd were observed with no water production.
Orara E1 Gas Discovery Well PEL 426 50% interest Target full vertical section Vertical well drilled to evaluate coal development on the southern margin of the basin. The Walloon Coal Measures and sand units of the Koukandowie Formation were observed during drilling. Immediate free gas flows to surface of 119,000 scfd were observed with no water production.
Different eyes have different views but in the eyes of the Lord, everybody is the same. Blessing of the Lord MLA
MEL Price at posting:
60.0¢ Sentiment: Buy Disclosure: Held
(20min delay)