(MENAFN- ProactiveInvestors - Australia) Comet Ridge (ASX:COI) has successfully drilled four pilot wells at its Mira field pilot project in ATP 337P in Queensland that have shown consistent coal thickness and good coal productivity.
The drill results confirm plans to operate two pilot schemes in the block.
The drill results come on the back of the Mahalo field pilot drilling in 2012 that demonstrated highly productive coals over a wide area of the block.
The Mahalo pilot drilling results from 2012 and the Mira pilot drilling results recently concluded, demonstrate highly productive and continuous coals across a large area of the Mahalo block, and confirm the ingredients required for successful pilot testing and reserves booking are present in both areas of the block.
The objective of both these pilot production projects is to demonstrate commercial gas flows in ATP 337P, with the intention of achieving an early initial reserves certification.
The coals across the north of the Mahalo block have been shown to be very productive via the eight pilot wells that have beendrilled in the Mahalo and Mira fields.
The four Mahalo field wells were completed for production during December, while completion operations on the Mira field pilot wells are currently underway and is likely to be completed by the end of this month.
Mira 2 is the centre well in the Mira pilot scheme and is located about 290 meres from each of three recently drilled Mira pilot wells.
The well reached a total depth of 320 metres intersecting about 9.1 metres of net coal.
Mira 2 is also the fourth well in an eight well programme for the Mahalo Joint Venture that started in mid-December 2012.
Four step-out core holes will now be drilled, to further extend the area available for booking reserves in the Mahalo block. The first of these is the Scrubber Gully 2 well which is expected to spud later in the week.
Comet Ridge has a 35% interest in AP337P Mahalo, having divested a 5% interest in the asset to Stanwell Corporation. As part of the agreement Stanwell will free carry Comet Ridge for all the expenditure for the Mahalo field and Mira field pilot schemes.
It also gives Stanwell an option to purchase half of all of Comet Ridge's equity in the Mahalo block based on 2P reserves booked.
Equity interests in Mahalo are Comet Ridge 35%, Stanwell 5%, AP LNG Ltd 30% and Santos 30%
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.