OilVoice - Bow Achieves Major Reserves Upgrade to the Blackwater CSG Field

Bow Achieves Major Reserves Upgrade to the Blackwater CSG Field

Monday, August 17, 2009

Bow Energy Limited (ASX:BOW) is pleased to announce a major upgrade to the certified Coal Seam Gas (CSG) reserves for its Blackwater CSG Field in Queensland’s Bowen Basin with significant future reserve upgrades expected from the field.

Independent consultants MHA Petroleum Consultants, LLC have certified 559 petajoules (PJ) of possible reserves (3P) gas reserves for the Rangal Coal Measures within the Blackwater CSG Field, which is located in Bow’s 100% owned Comet CSG block (ATP 1025P). This represents a 385 PJ (321%) increase over the previous 3P reserves certified in the field and takes Bow’s total net 3P reserves to 664 PJ.

The Blackwater CSG field is located in the heart of one of Australia’s most highly rated CSG provinces and lies 230 kilometres west of the Port of Gladstone where a number of worldclass export liquefied natural gas projects are being planned by third parties with CSG as a feedstock.

Bow has drilled six wells of a sixteen well exploration drilling program in the Comet block, which contains the Blackwater CSG field, and Norwich Park block which commenced in May following the grant of the blocks in March this year. Early results have confirmed an average coal thickness of 23 metres of gassy coal seams across the Blackwater CSG Field, along with encouraging signs of permeability and high gas contents over both the Rangal and Burngrove Coal Measures.

Bow’s Managing Director Ron Prefontaine said the drilling results indicate the potential of further reserve upgrades in the Blackwater CSG Field. He commented, “The preliminary results of our first six exploration wells support this interim reserve upgrade from the Rangal Coal Measures. The Rangal are the uppermost coal measures in the field.

“We expect additional reserve upgrades late in the fourth quarter of 2009 from the deeper Burngrove Coal Measures as well as likely upgrades in the Rangal Coal Measures once the final results from the current Blackwater CSG field exploration core hole drilling program are received and integrated into new mapping. Importantly, the Burngrove Coal Measures appear to have similar coal thickness, gas contents and permeabilities as the Rangal Coal measures. With Bow’s continued clinical and efficient approach to its CSG exploration program in its high potential Bowen Basin CSG blocks, we plan to continue delivering significant reserve upgrades at low cost to shareholders. The results to date suggest we are on track to reach our 2009 and 2010 gas reserve targets ahead of schedule.”

Blackwater CSG Field Production Pilots to Commence
In addition to the continuation of its 3P reserve upgrade drilling exploration program in the Blackwater CSG field, Bow plans to commence a multi-well CSG pilot program on the field in September with the aim of converting a large portion of the 3P reserves to 2P reserves.

Mr Prefontaine continued, “The current core well testing program has confirmed high gas contents, coal thicknesses and a wide range of coal permeabilities. Our pilot production programs, which will be carried out over several parts of the Blackwater CSG field, are not only designed to prove commercial flow rates and determine optimal completion methods where we have good permeability in the coals, but also to investigate and test various production enhancement methods such as hydrofracs in the coal seams which have lower permeability.”

Bow’s CEO Commercial, John De Stefani said, “As well as the reserve upgrade programs on the Blackwater CSG field, Bow will continue its reserve certification drilling programs on a number of other similar prospects in the Comet and Norwich Park blocks located on the same CSG fairway. The plan is to continue to move quickly to deliver additional certified reserves from these other projects located within this prolific CSG fairway and for Bow to continue its growth strategy to become a major upstream energy company.”

“The significant reserves of gas being certified in our Bowen Basin blocks constitute one of the few remaining sources of uncontracted gas resources located near Gladstone. Bow is currently investigating various options to commercialise its gas in both domestic and export markets,” he concluded.

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