ATP 1025P COMET BLOCK (Bow 100%)

PLA388 Environmental Authority Application

Bow has obtained 3P gas reserves of 2,467PJ and 2P gas reserves of 59PJ in the Comet Block.  Adjacent tenements are operated by BG Group and Arrow (50:50 owned by Shell and PetroChina).

Bow is in the process of trialing several completion techniques in the Blackwater CSG Field to deliver commercial gas flow rates.  

Initial Fracture Work Successful

As a part of the ongoing production enhancement operations, Bow is testing fracture stimulations of target coal seams to increase gas production.  This process is commonly referred to in the industry as fracing. 

The fracture stimulations are designed to enhance the existing permeability and thereby improve fluid and gas flow rates.  Fracture stimulation completions have resulted in commercial gas flow rates elsewhere in the Bowen Basin.  Bow closely monitors its operations and follows strict procedures in relation to environmental and operational management, in accordance with Queensland’s environmental regulations.

Initial fracture stimulations (fracs) have been completed on the northern ‘four spot’ CSG fracture pilot, located about four kilometres west of the Blackwater Power Project.  The fracs were successful at fracturing the targeted zones and pumping sand to prop open the induced fractures in the coals.  All of the fracced wells are expected to be completed for production testing during November. 

Lateral Drilling commenced after vertical wells encounter free gas and inferred permeability in the thick target coal.

The vertical production and flush wells for Bow’s first lateral CSG pilot program have been drilled and cased.  The target seam varied in thickness from four to eight metres and the vertical wells encountered live gas shows and good indications of permeability during post-drilling flushing of the holes.  A surface to inseam (SIS) lateral rig is being used to drill the lateral well pilot program.

Lateral drilling and completions have been successful in obtaining commercial gas flow rates in adjacent tenements and numerous other CSG and underground mine areas of the Bowen Basin. 

Commenting on the early results of the frac and lateral drilling program, Mr De Stefani said: “Bow’s first frac wells have been a technical success and we are very pleased with the results.  Now that the wells are fraced, the next step is to complete the wells with pumping equipment and commence dewatering the seams, with the aim of achieving commercial gas flows.” 

 

PLA388 Environmental Application

Bow Blackwater CSG PL Pty Ltd, a subsidiary of Bow Energy Ltd, has lodged an application under section 310C of the Environmental Protection Act 1994 in relation to Petroleum Lease PL388 for production of coal seam gas to commission and operate the Blackwater Power Station.  This application is for a Level 1 Environmental Authority for chapter 5A activities listed under Schedule 5 of the Environmental Protection Regulation 2008 which includes—

Item (8) A petroleum activity, other than a petroleum activity mentioned in items 1 to 7 under Schedule 5 of the Environmental Protection Regulation 2008, that includes 1 or more chapter 4 activities for which an aggregate environmental score is stated.  Under Schedule 2, the Chapter 4 activities include:

• ERA 8 chemical storage
• ERA 15 fuel burning
• ERA 56 regulated waste storage
• ERA 60 waste disposal
• ERA 63 sewage treatment

PL388 has an area of 16.48 km2 and is located approximately 14 km north east of the town of Blackwater and south of the Jellinbah mining operation.  The north eastern boundary of PL388 is accessed by the Bluff Jellinbah Road (refer to figure below for location details).

Any person can view, make a submission about the application, make copies and take extracts of the application and Environmental Management Plan (EM Plan), which can be downloaded from the following links:

PLA 388 EA application

• Application
• Application Attachments

PLA 388 EM Plan

• EM Plan
• Figure 2
• Figure 3
• Figure 4
• Figure 5
• Figure 6
• Figure 7
• Figure 8
• Figure 9
• Figure 10
• Figure 15
• Figure 16
• Appendix 1
• Appendix 2
• Appendix 3

The period in which submissions must be made shall be for twenty (20) business days from 19 April 2011 to 23 May 2011.  Properly made submissions must be written and signed by or for each person (“signatory”) who made the submission; and

• state the name and address of each signatory; and
• be made to DERM through the Petroleum and Gas Unit, Department of Environment and Resource Management, GPO Box 2454, Brisbane QLD 4001; and
• be received before the end of the submission period.

Queries on the application can also be made directly to:

• Bow Blackwater CSG PL Pty Ltd, Level 7, 10 Eagle Street, Brisbane QLD 4000.  Telephone (07) 3238 6300; or
• DERM, Level 3, 400 George Street, Brisbane QLD 4000, Attention P&G Unit. Telephone (07) 3330 5349.