OPERATIONS

Strong CSM flows at Gloucester Basin well: Molopo

MOLOPO says strong production rates from one of its New South Wales coal seam methane exploration wells demonstrates the Stratford pilot in the Gloucester Basin was suitable for commercial operation.

The LMG03 well has come online at an initial rate of 358,000 cubic feet of gas per day, with production continuing to build each day as water levels are reduced.

“The well has already demonstrated production capabilities well above the expected minimum threshold for a commercial project,” Molopo’s executive director Ian Gorman said.

In February last year, the LMG03 well reached an interim production rate of 667,000cfd and rising, until mechanical failure required the pump be replaced.

The Stratford production pilot will comprise six wells, and four have already been drilled and cased. Two of those wells are undergoing fracture stimulation.

Later this month drilling will start on the next well in the program, with all wells expected to fracced in December and progressively placed on production.

Molopo said the Gloucester joint venture, which also involves AJ Lucas, had contracted Netherland Sewell & Associates to prepare an initial reserves report for the project by year-end.

In addition, Molopo said it was reviewing several market options to commercialise the permit through the initial development of the Stratford pilot, one of which includes small-scale power generation.

“The JV is in discussions with a number of potential gas buyers, and is progressing gas sales agreement negotiations which are the remaining step in securing the initial reserves certification,” the company said.

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