CSG players on the rise
COAL seam gas has attracted much of the attention this week with two of the companies on PNN’s watchlist receiving strong support from punters on the back of their announcements.
A report from Eastern Star Gas that it expects an increase in production from the Bibblewindi multi-lateral pilot in New South Wales sent the company’s shares soaring.
The company said it had resumed full-scale production at the pilot after completing a series of well workover operations and bringing back the two dual laterals onto production.
New shield wells located on each side of the multi-lateral pilot have also been brought online.
Managing director David Casey said that while only two out of six pumps were operating when operations were scaled back in July, due to series of repeated mechanical failures of pump-drive components sourced from overseas, performance continued to be in line with predictive modelling for that mode of operation.
“This reinforces our confidence that gas production from the expanded pilot over the coming months both meet expectations and provide data to support further gas reserves increases.”
ESG closed up 6.1% for the week to 96c on Thursday.
Meanwhile, Arrow Energy’s plan for large-scale development of its CSG assets in the Surat Basin has taken another step forward with the announcement that an environmental impact statement is being prepared for the company’s proposed Surat Gas project.
The project involves the staged development of about 1500 production wells and associated infrastructure in an area covering its existing gas production fields at Tipton West, Daandine, Stratheden and Kogan North.
It will also include broader area extending from Wandoan to Dalby and south to Millmerran and Goondiwindi.
Initial investment is expected to exceed $1.5 billion.
CSG from this area is believed to be earmarked for Liquefied Natural Gas Limited’s Fisherman’s Landing LNG project and Shell’s larger LNG project, both located in Gladstone, Queensland.
AOE closed at $4.43 on Thursday, up 4% for the week.
Friday, 16 October 2009
PNN
PNN
APPEA blasts extension of NSW fraccing ban
