Both the blocks, where a combination of more favorable technical results from the recently completed Comet block desktop study and recent information on gas flows from the Fort Cooper and Rangal Coal Measures in areas adjacent to Bow Energy’s blocks in the Bowen basin achieved by other operators.
Last week Arrow Energy Ltd announced their first gas flows from the Fort Cooper Coal Measures in the Bowen basin and high gas flow rates in excess of 1 million cubic feet per day in the Rangal Coal Measures in the South Walker CSG project located north of Bow Energy’s Norwich Park block. These gas flows were from coal seams previously interpreted as having low gas flow rate capability.
Bow Energy’s Norwich Park block is on trend and has similar coal measures as Arrow’s Moranbah and South Walker CSG projects and Bow Energy plans to accelerate the exploration and appraisal drilling program in this block with drilling scheduled to commence in June 2009. The initial minimum 6 well coring program is designed to certify 3P reserves in multiple coal measures targets including Moranbah, Rangal and Fort Cooper Coal Measures and depending on the results, production pilot programs may commence later in the year in this block.
For the Comet block, Bow Energy recently announced initial gas reserve certification of 174 PJ of 3P reserves and 297 PJ of 2C gas resources for the Rangal Coal Measures over a portion of the interpreted prospective area of the Comet block. Bow Energy is now scheduling up to a minimum eight well coring program starting early May 2009 over the greater Comet block targeting the Rangal and Fort Cooper Coal Measures plus a comprehensive production pilot program aiming to substantially increase 3P and 2P reserves.
Managing Director, Ron Prefontaine commenting on Bow Energy’s increased gas reserve targets stated, “I believe the increased targets are realistic and achievable since they are strongly supported by recent gas flows near our Bowen Basin blocks and our internal review of technical information relating to our blocks.”
