Central Petroleum Ltd., Brisbane, has begun production at its Range coal seam gas pilot project in the Surat basin of southeast Queensland.
The development in exploration permit ATP 2031 is based on three wells—Range-6, 7, and 8—which have been successfully drilled and completed. Surface facilities have been installed and commissioned.
Pumps have been started at low speeds and the wells are currently producing water to the storage tank. The company plans to ramp up the pumps before July to gradually increase water rates and control well drawdown.
The three-well pilot will be operated for about 3 months subject to storage tank capacity.
The project is a 50-50 joint venture between Central Petroleum and fertilizer company Incitec Pivot Ltd. aimed to tap an estimated 270 petajoules of 2C contingent resources with full commercial production expected in 2024 to help meet the expected shortfall of gas supply in eastern Australia.