OPERATIONS

QGC begins work on first of five CBM pilot developments

Queensland Gas Company has begun work on the first of its five coalbed methane (CBM) pilot developments that the company will construct to determine the potential of the Surat Basin as one of Australia's major gas producing areas.

QGC begins work on first of five CBM pilot developments

The Aberdeen pilot development, which is located in the 100 per cent QGC-owned ATP 621P, is expected to take about two months to construct and will by managed by Thiess Pty Ltd, the major engineering and construction group that has a 6% stake in QGC.

Each pilot project will consist of a five-well development with associated gas gathering and water handling systems. The wells will be completed in each of the major coal seams of the Juandah interval.

The aims of the proposed pilot development program are to confirm the availability of the Walloon Coal Measures to produce CBM at a commercial rate, convert CBM gas resource into independently certified reserves for marketing purposes as well as determine the technical basis of design for full-scale field development.

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