Jade commences contingent resource assessment
Published by Jessica Casey,
Jade Gas Holdings has engaged RISC Advisory to audit the contingent resource booking for the Red Lake area, which is expected to be completed early in 3Q22. The contingent resource assessment will provide an estimation of the potentially recoverable gas from the Red Lake area based on the information generated from the TTCBM Project drilling to date.
The sixth well in the TTCBM drilling programme, Red Lake-6, is expected to spud within the week (pending approval from the regulator MRPAM). Red Lake-5 is currently suspended, with the drilling contractor advising Jade that a section of the drill string is stuck down hole and currently unable to be retrieved. Significant efforts have been made to recover the drill string; however, the rig on site does not have adequate horsepower to extract it.
While Red Lake-6 is drilling, an alternative rig and equipment will be sourced to extract the drill string from Red Lake-5. Should an appropriate rig and equipment not be available, a new Red Lake-5 well will be drilled at the expense of the drilling contractor.
Strong results have been delivered to date from the TTCBM Project drilling programme, with gas content observed in Red Lake-1 of 12 – 17 m3/t (dry ash free or DAF), an amount greater than some commercial fields in Queensland, high methane readings in the coal seams of interest (98% methane for seams III and 0 and 92.5% for seam IV), as well as an average of 60 m of gas bearing coal from each well (Red Lake-4 having 124 m of gas bearing coal). All of these results lay a robust foundation for the contingent resource assessment of the Red Lake area, as well as the extended production phase in 2H22.
The Red Lake-5 and Red Lake-6 wells will be used in the extended production test. There is no change in the timing for this test which will provide key information on well performance and deliverability to ultimately support assessment of commercial development options.
Read the article online at: https://www.worldcoal.com/cbm/30052022/jade-commences-contingent-resource-assessment/
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