Early gas has been seen during the commissioning phase of Blue Energy’s (ASX: BLU) Sapphire 5 and Sapphire 6 pilot wells in Queensland’s onshore Bowen Basin.
Activities confirmed the presence of hydrocarbons from the upper coals at both lateral wells, with gas flares observed despite minimal dewatering.
Blow down following the Sapphire 6 flare stack installation recorded a peak instantaneous gas rate of 1.6 million standard cubic feet per day over an eight-hour blow down period.
Blue said the presence of early gas confirmed the high saturation of respective coals in the Sapphire Block, which was previously determined in pre-drilling work.
Dewatering process
The Sapphire 5 and 6 vertical wells are now pumping to initiate a gradual dewatering process on the separate seams (laterals) in the pilot well set.
This is expected to slowly reduce pressure on the coals in the lateral wells and build gas rates to establish peak sustainable gas flow rates in due course.
The Sapphire well completions followed a period of intense drilling activity in November with a total 14,000 metres drilled including 8,000m of in-seam coal section from seven lateral wells.
Bowen Basin objective
Blue’s objective in the Bowen Basin has been to build the gas reserves base (through the conversion of 3C resources to 2P reserves) from an existing inventory of 3C resources situated in the Sapphire Block of ATP 814P.
Drilling targeted multiple coal seams, with dedicated lateral wells at separate seams.
Each lateral well was drilled at least 1,000m in coal and intersected the Sapphire 5 and Sapphire 6 vertical water drainage wells 1.4km away which were drilled as part of the same program.
The lateral wells were drilled with seismic control and the stratigraphy confirmed by the vertical wells at the front end of the program.
Blue’s forward plan is to commence and continue the dewatering process and establish the maximum gas flow rate for the wells and seams over the coming months.
This is expected to yield peak gas rates from which economic models can be refined to optimise development plans.
Regional seismic acquisition
Blue is progressing an environmental management plan (EMP) for the acquisition of 2D regional seismic in exploration permits within the Greater McArthur Basin in the Northern Territory.
The EMP will incorporate the results of field work carried out in March which looked at the flora, fauna and access points of potential seismic line locations.
Blue expects to lodge the EMP in the coming weeks.
The company continues to consult with respective Aboriginal Land Councils, traditional owners, pastoral landowners, government departments and other stakeholders as part of the process of establishing a community licence.
This work is required under the Territory’s new exploration activity approvals process.
