Comet Ridge Limited (ASX:COI) is pleased to advise that the Mahalo East Pilot Production Scheme started-up late last
week.
The Mahalo East 1 (ME1) vertical and the Mahalo East 2 (ME2) lateral wells were successfully drilled in October and
November last year. The ME2 lateral well made the intercept into the ME1 vertical well and drilled 1338 metres in
coal. During the pilot production testing that has just commenced, reservoir fluid (water and natural gas) will flow out of the natural coal fractures, along the ME2 lateral well path and then into the ME1 vertical well. Water and gas will
then flow up to surface inside the ME1 well, with the water lifted by the downhole pump.
The gas desorption phase of the laboratory analysis on the extensive core taken from the ME1 vertical well is almost
complete. Strong gas volumes have been observed desorbing from the coal samples taken.
During late November a completion rig installed production tubing and a downhole progressive cavity pump (PCP)
into ME1 for lifting water out of the vertical well. The production separator, flare and metering skid were then moved across from the Mahalo North pilot area and were installed on the ME1 well pad. Also installed was a temporary lined ring tank to collect and manage produced water. Figure 2 on the following pages shows the layout of the surface
facilities.
Both wells were drilled with the support of the Queensland Government’s Frontier Gas Exploration Grants Program,
under which Comet Ridge received a $5 million funding allocation.
For earlier operational information please refer to ASX releases on 10, 21 and 31 October, 11 November and 6 December 2024. Further updates will be provided as appropriate.