ATRIA Coal Seam Gas Project (ATP 684P SHG 100%)
Sunshine Gas Limited (ASX Code: SHG) is pleased to advise that the 7-well appraisal program at its Atria Coal Seam Gas (CSG) project north of Blackwater in Queensland’s Bowen Basin has been completed.
Managing Director Mr Tony Gilby said the Atria appraisal program had confirmed the presence of thick, highly gassy coals (up to 25m3/t) throughout the Permian Fair Hill Formation over an area of approximately ~350km2 within ATP 684P.
“These results confirm that this permit has considerable CSG in place. They are particularly encouraging as we push to increase Sunshine’s strong reserve position and secure feed stock for expansion of our proposed SUN LNG project at Gladstone in partnership with Sojitz Corporation,” Mr Gilby said.
“We will now work rapidly towards identifying the optimal production well completion technique to maximise gas recovery from the seams.”
The Atria core-hole program intersected five main coal seams with strong geological correlation between the wells. A total of 62 coal samples have been put on desorption test to develop a comprehensive depth and gas-content analysis.
Mr Gilby said permeability measurements are encouraging and in-line with pre-drill expectations.
“Permian coals in this region are generally viewed as being tight, therefore early indications of permeability are a good sign for commercial gas recovery,” Mr Gilby said.
“Further permeability modelling now underway will be used to design a pilot well drilling program.”
The Company is now in the process of calculating prospective resource figures for the project area. A formal reserve certification program is also being designed and will be run in conjunction with MHA Petroleum Consultants.