Blue Energy (ASX: BUL) holds eight operated coal seam gas petroleum permits in the Bowen, Galilee and Surat basins in Queensland. It is also awaiting final award of four conventional permits within the Queensland portion of the Eromanga Basin.
Blue Energy all systems go at Monslatt after flooding, no damage to infrastructure
Flooding has receeded and work on the Blue Energy (ASX: BUL) Monslatt production pilot wells have recommenced, with the project located around 200 kilometres north-west of Rockhampton.
Most importantly, there has been no damage to infrastructure at the Monslatt 4, 5, 7 and 8 wells.
Only access to Monslatt 6 is currently restricted.
At Monslatt 5 a gas field services rig is on location and is preparing the well bore for the drilling of multiple short radius/small bore lateral wells using high pressure water jetting technology.
Once completed, Blue Energy will then run down hole pumps and the well will be put on pilot production test.
Blue Energy said the short radius high pressure water jetting technique is being trialled to establish if these laterals will provide significantly enhanced net coal intersections for gas production, and therefore optimised gas production rates and minimised costs.
In late 2010, Monslatt 8 was successfully drilled to intersect the vertical Monslatt 7.
Down hole pumps have been run in Monslatt 7 and surface equipment has now been installed so that pilot production testing can commence by the end of the week.
The Monslatt Block of ATP 814 currently has 1,295 petajoules of recoverable 3C contingent resource, as independently identified by NSAI, together with a shale gas prospective resource of 3,630 petajoules of gas in place.
Importantly, the Monslatt Block is located in close proximity to significant coal mine infrastructure with large energy consumption potential.
