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Comet Ridge Limited (ASX:COI) announced its production testing update for Mahalo Gas Project. The project comprises Memooloo 2, Struan 3/2 and Sirius Road 2/1 wells, which were drilled in a five-well programme between late October 2018 and early January 2019. The Mahalo Gas Project lies around 240 kilometers west of Gladstone in central Queensland.
All its three production tests are running smoothly with water rates between 20 & 36 bwpd (barrels of water per day). Currently, Memooloo 2, the first well on-line, is producing 36 bwpd, Struan 3/2, the second well to be started, is producing 25 bwpd and Sirius Road 2/1 is producing 20 bwpd.
Each of the production test wells was brought on-line at very low pump speeds resulting in initial water rates of approximately 10 to 12 bwpd (barrels of water per day) for each well. Pump speeds have been progressively and slowly increased on the wells over the past couple of months. However, bottom-hole pressures are still relatively high with scope to steadily speed up pumps. Therefore, specific measures are taken to ensure bottom-hole pressures are brought down slowly to avoid mechanical damage to the natural fracture system in the coal reservoirs.
Both Struan 3/2 and Sirius Road 2/1 are starting to produce gas at low rates. When production was tested, water rates for all wells in the Mahalo Block have been consistently low, notwithstanding the significant gas rate of 1.4 MMcfd that was achieved last year on the Mira 6/2 combination in the Mira pilot scheme.
The company expects there is significant scope to increase pump speeds in these wells over the coming weeks, with only about a quarter of the bottom hole pressure in each of the wells drawn down so far. It will provide updates on the production testing results for these wells at regular intervals.
All the necessary core data was also taken from the three vertical wells (Memooloo 2, Struan 2 and Sirius Road 1) for gas content and isotherm analysis. Gas content laboratory analysis has now been completed on the Memooloo 2 and Struan 2 vertical wells and is still ongoing on the Sirius Road 1 well. Preliminary results for gas contents on the first two wells are in line with expectations, with Memooloo 2 results being particularly pleasing where one of the key objectives was to demonstrate developable gas content in the north of the block at a shallow depth.
In a previous announcement, Vintage Energy Ltd. will increase its stake in Galilee Basin Deeps Joint Venture from 15% to 30%. Currently, Comet Ridge has an 85% stake in it. Under the venture, 336 kilometers 2D Koburra seismic program has been successfully acquired.
At the time of writing (06 March 2019, AEST 01:38 PM), Comet Ridgeâ share is trading at $0.335, up 3.077% during the daysâ trade with the market capitalization of ~$236.56 Mn. Its loss per share was noted at 0.003 AUD. Its 52 weeks high has been noted at $0.42 and 52 weeks low at $0.26. Its absolute return for 3 months, 1 year, and 5 years are -1.52%, 8.33%, and 118.5% respectively.
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