Santos investigating Mahalo potential
SANTOS has begun exploring the Mahalo Block in ATP 337 of the Bowen Basin for coal seam gas potential with the spudding of the Scrubber Gully-1 core well on Tuesday.
Partner Comet Ridge said the well was being drilled in area about 12 kilometres south of the Humbolt-1 exploration well and 11km southeast of the Mira-1 exploration well to test coal development and permeability of the Bandanna Formation coals.
The well, to be drilled a total depth of 445m, will help firm up contingent resource estimates for the block and determine the best areas for future appraisal and development.
In May, Comet Ridge said another two core wells may be drilled before a pilot program begins in the second quarter of 2010.
The Mahalo Block is about 150km north of the producing Fairview CSG field and around 245km west of Gladstone.
According to Comet, the block has a prospective resource of about 1 trillion cubic feet of gas in place and is close to infrastructure, allowing for quick commercialisation.
Comet holds a 40% interest in the block while operator Santos and Origin Energy each hold 30%.
Scrubber Gully-1 is expected to take 11 days to drill and test.
Wednesday, 15 July 2009
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