Bow told the market on Friday that the JV – which also involves Roma Petroleum and Victoria Petroleum – has started drilling the Orallo North-1 CSM well.
The well is about 19km from the first well, Taringa South-1, which recently flowed gas at about 370,000 cubic feet per day on test.
Orallo North-1 is also about 25km west of Sunshine Gas’ Lacerta CSM field.
With a planned total depth of 420m, the well has been designed to determine coal thickness, gas contents and assess dewatering capability of the coals in the Orallo North area. It is not expected to flow free gas.
Meanwhile, Bow said that gas recovered from its previous Taringa South-1 well comprised 96.92% methane, with 2.96% nitrogen and only 0.12% carbon dioxide, suggesting it was of suitable gas pipeline quality.
“The joint venture will complete the initial exploration wells as pilot production holes in order to carry out flow and production testing,” the company said.
“Assuming positive results of the initial pilot wells, a process of reserve certification should commence early in 2008.”
Interests in the Don Juan joint venture are: Bow (operator – 45%), VicPet (45%) and Roma CBM (10%).
