Project Profile
Value: Undisclosed
Location: Galilee Basin, approximately 70km NNE of Longreach, Queensland
Permits: ATP 1008P, ATPs 991 and 996, ATP 999, and ATP 1005P
Start-up Year: -
There are only seven CSG wells in the Galilee Basin with published gas content data (Rodney Creek 1, 2, 7 & 8, Crossmore 2, Splitters Creek 1 and Aberfoyle 1). Average gas contents from these wells are in the range of 4 to 8 m3/t. Exoma, in calculating potential or contingent GIIP has used the more conservative value of 4m3/t for calculating CSG GIIP estimates. Most wells in the basin were drilled on structural highs in pursuit of conventional hydrocarbon targets. Re-evaluation of the extensive seismic data indicates many wells were drilled on the crests of structures where the net coal (or total Permian section) is thin. Thicker coal sequences can be seen on seismic off the flanks of these structures.
It is unlikely that the gas content within the shales and coals will be evenly distributed, so Exoma’s first exploration task will be to identify so called sweet spots where better than average gas contents, gas saturations and formation permeability may occur. The initial drilling programmes will therefore focus on Permian CSG which is better understood but will include one or more shallow wells to evaluate the shale gas potential of the Cretaceous Toolebuc Shale. The first three Permian wells (estimated to be approximately 950 -1100m deep) are planned to core and test the coals in ATP 1008, with the first well estimated to spud sometime in June 2010. The locations have been chosen following the company’s extensive review of the available geological and engineering data and the appropriate pre-drill preparatory work has begun. Follow-up drilling of 11 more cored wells in ATPs 991 and 996 will follow, subject to funding availability. The shallow Toolebuc wells in ATP 999 will also core and test the shale-gas interval at depths between 300m and 900m.
Despite minimal CSG exploration work in the basin to date, there are already two Galilee Basin CSG pilot projects (at Rodney Creek & Glenaras) under development, both operated by AGL. Also, a number of other companies have begun extensive drilling programs in the Galilee Basin. Exoma holds the largest contiguous acreage in the Galilee Basin and is well placed to become the area’s market leader and is planning an extensive drilling program over the next three years.
Operators:
CNOOC Galilee Gas Company Pty Ltd.: Operator with 100% interest
Contractor:
Atlas Drilling: Drilling contractor
Ausdrilli: Drilling contractor