Metgasco Limited, an Australia-based company focused on investment in hydrocarbon exploration, appraisal, and development of coal bed methane (CBM), has been informed by Lucas Drilling that Lucas Rig No 150 will be mobilized during the week commencing October 5, 2009 to start drilling the Kingfisher E1 well. This well is located in PEL 16 around two kilometers from the town of Casino in northern New South Wales. Metgasco has a 100% interest in this well.
Several zones with attractive potential being tested
The Kingfisher E1 will be drilled to a total depth of 2,100 meters. It will appraise several zones including the Heifer Creek and Gatton sandstones and the deeper Ripley Road Sandstone, also known as the Precipice sandstone in the Surat basin which has historically been a major oil and gas reservoir.
Large Gas in Place estimate
Metgasco estimates that the original gas in place (OGIP) potential of the entire Kingfisher structure is 82 Bcf (P50) and 831 Bcf (P10) with a contingent resource of 36.6 Bcf (P50) attributed to the gas sands intersected in Riflebird E14.
A number of attractive drilling prospects have been identified
New seismic data was acquired over the Kingfisher field in the past year and the completion of recent mapping indicates that the field has an area of approximately 25 square kilometers. The Kingfisher field is optimally located for petroleum accumulation on a mid-basin high trend recently discovered by Metgasco where the company has identified a number of attractive additional drilling prospects.
Background to the discovery of the Kingfisher conventional gas field
The Kingfisher Field was discovered by Metgasco in May 2008 as a result of drilling the Riflebird-E14 well at a location 950m south of the Kingfisher E1 site. Riflebird E14 was drilled to a total depth of 1,296 meters and penetrated a gross 49 meters of gas-bearing sandstone. Additional potential below this depth remained undrilled due to the limited capability of the coal seam gas rig being used at the time.
Three gas bearing zones were identified from wireline log analysis, one in the Heifer Creek Sandstone between 1,042 – 1,052 mRT and two in the Gatton Sandstone between 1,240 – 1,289 mRT with total net pay estimated at 24 meters. Several flow tests were run on Riflebird E14 with gas to surface at rates in excess of 300,000 scf per day being produced.
Small volumes of condensate were recovered during flow testing suggesting the potential for oil or gas liquids within the field. Further, no gas water contacts were observed in the well and a gas gradient was established from wireline pressure testing which indicated that additional pay is likely to be encountered below the level of the lowest known gas.