Origin ramping up CSG production
ORIGIN Energy has posted a 1% quarterly increase in production to 25.4 petajoules equivalent for the September quarter as coal seam gas development continues to pick up pace.
While the company reported a 25% drop in production year-on-year, this is due to the 50% dilution of its interest in almost all of its CSG permits under the Australia Pacific LNG deal with ConocoPhillips.
Revenues for the September quarter were up 8% over the previous quarter to $146.2 million but down 26% year-on-year due to the APLNG transaction and lower international prices for oil, condensate and LPG.
Over the quarter, Origin completed drilling of all wells in Phase 5 of its Spring Gully gas development. Seven wells were brought online while the remaining 13 wells will be brought online soon to complete this phase of the project.
The company said that well productivity had exceeded expectations and it expects total project production capacity to exceed the Phase 5 target of 150 terajoules per day once the additional wells are online.
It added that civil works at the Taloona gas plant as part of the Phase 6 development were in progress. This phase includes the drilling of a further 31 wells and the construction of additional capacity at Talloona to increase overall Spring Gully capacity to 180TJ/d.
Over in Fairview, production has also increased as the Phase 2 infrastructure expansion project progressed. This includes the installation of additional gas and water gathering lines, construction of a gas plant and a reverse osmosis plant, as well as additional water disposal ponds and infrastructure.
Seven development wells were drilled in the September quarter as part of an ongoing program designed to underwrite future production and reserves growth.
Origin added that construction of the Talinga gas plant and water handling facilities were well advanced with the first stage of the plant completed and in commissioning.
The second stage of the plant, which will have a capacity of 90TJ/d is also progressing with compressor and cooler pads completed.
The company also drilled 22 development wells at Talinga-Orana during the quarter while a further six development wells were brought online, bringing the total up to nine wells producing a total of 9TJ/d.
Lastly, Origin drilled 18 development wells in the Lauren and Argyle fields and also commissioned the Kenya sales gas plant.
Wednesday, 28 October 2009
PNN
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