Strike Energy has recently announced the discovery of contingent deep coal seam gas resources at the Southern Cooper Basin Gas Project (QLD).
Consulting firm, DeGolyer and MacNaughton have independently certified the gas resource at the site.
Strike Energy’s Managing Director, David Welsh, is excited by the discovery stating that, “strike is delighted that leading international petroleum industry consulting firm, DeGolyer and MacNaughton has confirmed that the results of our first appraisal wells in PEL 96 have defined a significant contingent gas resource.
“This achievement represents an important milestone for the project and defines a clear pathway towards building a substantial reserve base.
“The review confirms that the project is already very close to being economic and our testing program over coming months specifically targets the final results required to prove commerciality and achieve reserve certification.
“The Southern Cooper Basin Gas Project is one of the few projects actively moving forward with the potential to supply substantial quantities of competitively priced gas to Eastern Australian gas markets.”
DeGolyer and MacNaughton was engaged by Strike to undertake an Independent Review of the gas resource based on the data and information acquired to date by Strike from the drilling and flow testing programs carried out at four of the site’s wells.
DeGolyer and MacNaughton has estimated a contingent gas resource for the initial zones that have been flow tested. As these zones only represent a portion of the net coal encountered at these locations, successful flow testing of additional zones will enable an increased contingent resource to be booked.
For the contingent resources to be classified as reserves, establishment of sustained commercial gas flow rates from one of the coal resources will be required to better define gas and water production rates and volumes, the drainage pattern and well spacing.
Additional drilling will also be required to confirm the reservoir quality and gas content of the coals outside the existing contingent resource areas in order to grow and upgrade the resource to reserves.
Importantly, the project already satisfies a range of other typical contingencies including low well costs, gas sales agreements, proximity to pipeline infrastructure and market pricing.