Real Energy to Drill CBM Well in Queensland
Sydney-listed gas explorer Real Energy will start drilling of a new coalbed methane (CBM) well, Venus-1, in Queensland next month, it said on September 15 in a statement.
Drilling contractor Silver City Drilling has been selected to drill the borehole, which will reach a total depth of around 680 m.
“The Venus pilot drilling and set up is planned to commence in October and the subsequent production testing is expected to continue into early 2021,” Real said. “The production testing is designed to prove initial gas breakout and increasing gas flows over the controlled draw down period as required to model and predict future gas flow rates and potentially commercial gas flow rates.”
Test results will also be used to either expand the pilot or, if commercial flow rates are achieved, start an appraisal programme designed to certify sufficient reserves for the Project Venus joint venture to secure gas sales agreements to allow for commercial field development, the company said.
“We are pleased to be commencing the drilling of Venus-1. The prospect has considerable near-term upside having 694 petajoules of prospective resources and we believe with some success on this well we can deliver a meaningful contingent resource in the short term,” managing director Scott Brown said.
Project Venus, equally owned by Strata-X Energy and Real, spans 154 km2 of the Walloon CBM fairway in Queensland’s Surat basin. In July, Strata-X and Real agreed to merge into a new company Pure Energy. Post-merger, Pure Energy will have 100% of Project Venus.