Located in south-west Queensland, the Argyle East Pilot is being developed as part of the program to prove up the certified gas reserves needed to support the 10-year, 74PJ Incitec Pivot contract.

Already 3P gas reserves of 102.4PJ (equivalent to 98.5 bcf) have been certified from the Argyle Pilot and all the indications are that this figure will be boosted very substantially once the Argyle East results can be incorporated, according to QGC.

The five wells lie 5.75km north-east from the original Argyle pilot and are assessing three coal seams.

The longest production from this pilot is Argyle-9, asssessing the all-Juandah coal seam and currently producing 108,900 cubic feet per day and 1955 bbls of water per day on a 3/8-inch choke at 13psi.

The highest production is from Argyle-10, an upper Juandah test that has been producing for seven days and is now producing 148,900 cubic feet per day with 711 bbls of water on a 1/4-inch chokke at 71psi.

Gas production is rising rapidly and water production is leveling off, according to QGC.

"We are extremely pleased with the rapid response of this step-out effort which is demonstrating the benefits gained from our experiences from the Berwyndale South and Argyle Pilot areas in all intervals," said QGC general manager operations Ray Johnson.

"It took us nearly a year-and-a-half to reach this level of sustained gas production in Berwyndale South. QGC's new well completion methods are proving to be the key to unlocking the true potential of the Walloon Coals."