Encouraging results validate pilot production well

CSG explorer Comet Ridge has received positive drilling results, in terms of both coal thickness and permeability, from the Mahalo 3 well in Queensland’s Bowen Basin.
The well was drilled about 260km west of Gladstone in ATP 337P (Mahalo) to target the shallow Bandanna Formation. Reaching a total depth of 300m, Mahalo-3 intersected about 8m of net coal, with 7m in the main Castor-Pollux seam.
Comet Ridge reported in an ASX release that the Castor-Pollux seam was the target of a reserves booking plan being executed by the ATP 337P Mahalo joint venture partners:
Comet Ridge (35 per cent) Santos (30 per cent), Australia Pacific LNG (30 per cent) and Stanwell Corporation (5 per cent).
“Analysis of flow testing in Mahalo 3, conducted over this main seam, has shown the Castor-Pollux to have sufficient permeability to enable the well to be utilised for pilot production,” Comet Ridge stated.
“Accordingly, production casing has been run and cemented in place.”
The company reported that the next well to be drilled in the four pilot well sequence was supposed to be Mahalo 4; however due to unseasonal rainfall in the area, the well drilling sequence had been modified to drill the driest sites first.
The rig was moved to Mahalo 6, which spudded on July 22. This well had a planned total depth of 300m and was also targeting the Castor-Pollux seam.
Further enhancing Comet Ridge’s position in the state, the company recently signed a three-stage farm-in agreement with Queensland Energy Resources to earn up to 75 per cent interest in the Lake Galilee farm-in area and become the project operator.
The farm-in area is in the south-east of permit ATP 1015P, between the east and west vicinities of Comet Ridge’s wholly owned ATP 744P.
“This transaction creates a continuous acreage position across our key area in the Galilee Basin, expanding the Gunn project area to the east and allowing it to be appraised as a single project,” Comet Ridge managing director Tor McCaul said.
“We are very keen to commence exploration and appraisal drilling in the Lake Galilee farm-in area to better understand the eastern extent of our Gunn project area.”
The Lake Galilee farm-in area comprises two separate areas totalling about 825 square kilometres. The farm-in agreement allows for staged interest earnings of 20 per cent, 30 per cent and 25 per cent respectively, with a total of nine wells to be drilled.Comet Ridge has integrated data from seismic and gravity surveys into its geological models for the area.
“The team has worked very hard over the past two years on improving Comet Ridge’s technical understanding across its portfolio, including the Galilee Basin and ATP 337P (Mahalo) in Queensland, the Gunnedah Basin in New South Wales, and in New Zealand, where significant gas resource bookings have been made over all of these areas,” Mr McCaul said.

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