Victoria Petroleum N.L. (Victoria Petroleum) has announced announce progress on the reserve certification program for the Don Juan coal seam gas (CSG) project. The operator of the Don Juan CSG project, Bow Energy Limited (Bow Energy) recently reported independently certified gross 3P reserves of 192 PJ (86 PJ net to Victoria Petroleum) in the Don Juan CSG field in the Surat basin.
Following this, reserve certifiers MHA Petroleum Consultants, LLC (MHA) advised the joint venture of an initial 2P testing program designed to certify 2P reserves and quantify the flow potential of the wells.
Following excellent results of the initial Don Juan 2P testing program completed last week which indicated high coal permeability’s, the joint venture is now doubling the program from three to six wells with the objective of increasing the area from which 2P reserves may be converted from 3P reserves.
The original testing program was planned to test three coal-bearing intervals in each of the Carnarvon-2, Carnarvon-3 and Carnarvon-4 wells, located in the main focus area of the Don Juan project area. High coal permeability’s have been encountered in each of the initial three wells tested, prompting the joint venture to extend the testing program to include target coal intervals in the Taringa South-2, Taringa South-3 and Orallo North-2 wells.
MHA’s independent verification of the permeability tests on the initial three wells is expected to be completed within a month.
The Don Juan CSG project is a joint venture between Bow Energy, as operator with 55% interest (Walloon coal measures only), and Victoria Petroleum having a 45% interest. The Don Juan CSG field is located about 40 kilometers north of Roma in Queensland adjacent to and west of Sunshine Gas Ltd’s Lacerta CSG field.
The Lacerta CSG field has certified gas reserves of 469 PJs of 2P and 1,097 PJs of 3P.
The joint venture interprets the Don Juan CSG field to be a westerly extension of the Lacerta gas field.
Commenting on the progress of The Don Juan CSG project certification program, Victoria Petroleum managing director John Kopcheff said:
“Victoria Petroleum supports the aggressive certification program in place for the Don Juan CSG project.”
“Added to Victoria Petroleum’s CSG interests in the ATP 574P and PL 171 Surat basin permits to the east in the main Walloon CSG fairway with BG/QGC as operator, where reserve certification drilling is planned to commence mid year, Victoria Petroleum is confident of significant future value in its CSG holdings with its interest in a gross 2 trillion cubic feet in place CSG resource.”