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QUEENSLAND
Queensland permits and prospects.
Mungi Gas Field.
Mungi Gas Field – (PL94 Sublease) (50% interest northern portion)
Molopo’s share of gas production (excluding compressor gas consumption) and sales from the Mungi Gas Field for the year was 345 TJ and $724,853, respectively.
With the successful drilling of Mungi 20A CBM well, Molopo announced the completion of the first triple seam dual lateral trial well in Australia. Following initial drill string issues, the vertical well was re-drilled and the well completed with shorter laterals. A total of approximately 2,900 metres of net coal was completed in six laterals from two surface locations involving three seams. The well was completed and tied-in to the gas sales system in December 2008. Mungi 20a, reached peak gas production rates between 1.1 and 1.2 MMscf/d during the March to May period with facilities pressure control limiting further production increases.
The next well in the programme, Mungi 20V, used the existing initial Mungi-20 vertical well and a new rig was brought in to drill laterals of 1,000 metres and longer. Molopo achieved a major milestone with the completion of this well during the year. It was the third innovative multi-lateral trial development well. Mungi 20V successfully accessed over 5,300 metres of lined coal in six laterals, involving three coal seams. This is significantly more than any other lateral well drilled in Australia. The well was connected to the gas sales system in July 2009. In mid-August 2009, Molopo announced that the well had reached an interim milestone of 1 MMscf/d gas flow.
Drilling of the fourth well in the current programme, Mungi 21, commenced in June 2009. The vertical target well for the proposed laterals, Mungi 21V, was drilled to its planned total depth of approximately 775 metres in June 2009. Mungi 21 is targeting a total of 7,000 metres of completed in-seam coal length utilising laterals of 1,200 metres gross length and longer.
Subsequent to period end, Molopo issued a new Sole Risk Operation Notice for the drilling of Mungi 23, located in the northern portion of PL 94 sublease. This proposed triple seam, triple lateral development well is expected to access 9,000 metres of lined coal.
The configuration of recently completed and planned wells, together with the performance of the recently completed wells is summarised in the following table:
No. of
lateralsSeams Length lined
metresCoal depth at
vertical metresPeak gas rate MMscf/d * Suspected blockage constraining production.
* * Interim rate with production increasing
Drilling operations at the Mungi Gas Field, Queensland.
During the year Molopo extended its Mungi gas sales contract with Dawson Sales P/L (a company owned by Anglo Coal (Dawson) Limited and Mitsui Moura Investment Pty. Ltd.) for a further year. The gas sales agreement provides for the sale of up to 6 TJ/d on an as available basis. Molopo has also signed a longterm agreement for the supply of 0.3 TJ/day of gas to Qenergy Pty. Ltd., a licensed electricity retailer in Queensland, for the first stage of its new power station in the Bowen Basin.
A Sole Risk 2D vibroseis seismic survey was completed to provide structural control for existing planned production wells and potential future wells in the Mungi Gas Field. Planning to firm up a programme of additional Sole Risk 2D seismic acquisition in PL94 Sublease continued.
Molopo and the Joint Venture Operator continued to discuss matters in relation to Molopo’s notice of a full field Development Plan for Mungi and Molopo’s preparedness to assume the role of Operator for the development as well as its Sole Risk wells Mungi-9 to 22.
Harcourt/Bindaree project area.
Drilling operations at the Harcourt Gas Field.
Greater Timmy Area.
ATP564P/PLA210 - Harcourt Gas Field
ATP564P/PLA210 contains the Harcourt Gas Field and the Sirius, Lilyvale and Oak Park Prospects. During the year Molopo completed a 2D vibroseis seismic acquisition survey on behalf of the Joint Venture in the Harcourt area. This survey was conducted as an adjunct to Molopo’s Sole Risk seismic acquisition at the Mungi Gas Field. Anglo drilled Harcourt-4 (a vertical drainage well) and failed to complete Harcourt-5 (a surface to in-seam well) after encountering drilling difficulties.
PLA210 was re-submitted under the new petroleum regulations in Queensland and was accepted by the Department of Mines & Energy (“DME”) as a valid application. The revised application area covers the Harcourt South area. Discussions continued with a coal mining group interested in developing an underground mine at Harcourt South on a potential co-operation and co-development agreement.
Molopo proposed three cored Sole Risk exploration wells over Harcourt North, in which the Joint Venture partners elected to participate. The Joint Venture subsequently postponed this drilling and testing activity until early 2010. No new field work was conducted at Lilyvale, Oak Park or Sirius during the year.
The Joint Venture prepared and lodged a PLA over part of the Oak Park Prospect in an area where a coal mining company has applied to develop part of the area as an underground coal mine. The application was accepted by the Queensland DME as a valid application and PLA296 was granted. The Joint Venture commenced co-development discussions with the coal mining company and these are ongoing.
Molopo achieved a reserves certification upgrade for Harcourt South in July 2008. The effect of this upgrade is shown in the following table:
levelNote 1: Bscf approx 1.035 PJ.
Greater Timmy Area - ATP602P and Southern ATP564P
ATP602P contains the Timmy Prospect which covers an area of 310km2 and lies to the south of PL94 and in the southern part of ATP564P. No new field work was conducted at Timmy during the year.
Molopo proposed three cored Sole Risk exploration wells over the Timmy Prospect, in which the Joint Venture participants elected to participate. The Joint Venture subsequently postponed this drilling and testing activity until early 2010.
The Timmy-1 well, which consists of a vertical well and two laterals in separate seams, remains suspended awaiting a workover. Pressure differentials indicate that the laterals are blocked.
Drilling operations in Queensland.
