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MPO - Strong Gas Flows In QLD

  1. 782 Posts.
    Strong Initial Gas Flows in Qld Well & Spudding of Timmy 1

    MOLOPO AUSTRALIA NL 2002-10-22 ASX-SIGNAL-G

    Molopo Australia NL announces that the Mungi 4 production well in
    Queensland's Bowen Basin is currently producing around 700,000 cubic
    feet of gas per day. Although de-watering is not yet complete, the
    well has averaged 472,000 cubic feet/day over the past two and half
    weeks.

    Current flow rates from the Mungi 4 well are considerably higher than
    the anticipated minimum threshold required for the commercial
    development of the Mungi field.

    The coals are not yet fully dewatered and continued testing is
    required before long-term production estimates will be made.

    Molopo will use its share of the gas to supply gas under a contract
    announced to the ASX on 13th August 2002.

    Molopo also announces that it has spudded the Timmy 1 well in
    ATP602P, which represents the vertical and first of two wells for the
    Timmy surface to in-seam (SIS) appraisal programme.

    The Mungi 4 well, located in PL94, is part of a four well program
    designed to increase reserves and demonstrate the optimum drilling
    and stimulation technique prior to commercial development.

    The Mungi 2 and 3 SIS completion wells have been drilled and will be
    placed on production test once cleanout operations are concluded.

    Drilling has been successfully concluded at Molopo's Harcourt SIS
    wells in ATP564P. Production testing is expected to commence in two
    weeks following completion of the wells.

    Latest estimates indicate the Mungi Prospect covers an area of 34
    sqkm with the potential to contain 163PJ of recoverable gas. PL94
    adjoins the southern border of ATP564P. OCA currently operates a
    successful CBM project in the southern section of PL94 comprising
    over 50 wells.

    The Dawson Valley pipeline passes through the middle of the Mungi
    Prospect before connecting with the Wallumbilla-Gladstone pipeline.
    PL94 is also the closest production licence to the Gladstone market.

    Interest holders in the Mungi Prospect are Oil Company of Australia
    (Moura) Pty Ltd (50% and operator), Molopo Australia NL (25%) and
    Helm Energy-Australia, LLC (25%).

    S Mitchell
    MANAGING DIRECTOR
 
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