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"There's nothing like proving that it happens in a full-scale development mode," CEO Nick Davies told iTV.
Arrow has marked its first revenue after achieving a delivery rate of one million cubic feet of gas a day into the Roma to Brisbane pipeline.
"Although we’ve drilled a lot of exploration wells over the last few years, a lot of appraisal wells, and done a number of pilots that show how the wells perform over a short period of time, there’s nothing like proving that it happens in a full-scale development mode, and today we’ve proved that," Arrow Energy CEO Nick Davies said.
The milestone is very significant for both Arrow Energy and the Australian coal seam gas industry. It represents the first sale of coal seam gas from the Wooloom coal measures and the Surat Basin.
“It’s important because it shows that everything works,” Mr Davies said.
“We have 31 wells now producing in the Kogan North field. When we did our pilot we only had four wells producing, and they were about 150-500 metres apart. These 31 wells are over 900 metres apart, and so we have a much larger area to de-water.”
“Proving that that all works is a considerable step forward, because we have a significant area to remove the water from and we’ve been flowing the wells now for over six months.”
The project is the first in many for Arrow who is developing a number of prospects in the Surat Basin and a number of other areas.
“We have three development projects now: this is the first of those. We have eight further appraisal projects, and our goal, as we publicised for the last year and a half, is to get to 45 petajoules per annum of gross operating production by 2010,” Mr Davies said.
Mr Davies believes Arrow’s success at Kogan North is significant for these other projects.
Not only does it demonstrate the company’s ability to develop such a resource, but many of the projects share similar characteristics and are expected to behave the same way during development.
“The Daandine field, for instance, is just across the road from Kogan North. It’s the same coals, just extending into a different lease, and we already have drilled a number of wells on Daandine and shown that the coals look the same and behave the same as Kogan. So that’s given us a lot of confidence for both of these next two developments.”
“We believe the company is well on its way to achieving its 45 petajoules per annum target, and we look forward to many more successful developments in the Surat Basin and elsewhere.”
Copyright Starlink Media TM
"Although we’ve drilled a lot of exploration wells over the last few years, a lot of appraisal wells, and done a number of pilots that show how the wells perform over a short period of time, there’s nothing like proving that it happens in a full-scale development mode, and today we’ve proved that," Arrow Energy CEO Nick Davies said.
The milestone is very significant for both Arrow Energy and the Australian coal seam gas industry. It represents the first sale of coal seam gas from the Wooloom coal measures and the Surat Basin.
“It’s important because it shows that everything works,” Mr Davies said.
“We have 31 wells now producing in the Kogan North field. When we did our pilot we only had four wells producing, and they were about 150-500 metres apart. These 31 wells are over 900 metres apart, and so we have a much larger area to de-water.”
“Proving that that all works is a considerable step forward, because we have a significant area to remove the water from and we’ve been flowing the wells now for over six months.”
The project is the first in many for Arrow who is developing a number of prospects in the Surat Basin and a number of other areas.
“We have three development projects now: this is the first of those. We have eight further appraisal projects, and our goal, as we publicised for the last year and a half, is to get to 45 petajoules per annum of gross operating production by 2010,” Mr Davies said.
Mr Davies believes Arrow’s success at Kogan North is significant for these other projects.
Not only does it demonstrate the company’s ability to develop such a resource, but many of the projects share similar characteristics and are expected to behave the same way during development.
“The Daandine field, for instance, is just across the road from Kogan North. It’s the same coals, just extending into a different lease, and we already have drilled a number of wells on Daandine and shown that the coals look the same and behave the same as Kogan. So that’s given us a lot of confidence for both of these next two developments.”
“We believe the company is well on its way to achieving its 45 petajoules per annum target, and we look forward to many more successful developments in the Surat Basin and elsewhere.”
Copyright Starlink Media TM
