METGASCO Casino Project - Case Study

Client Background

Metgasco is an Australian energy company developing gas reserves and power for the eastern Australian energy market. Metgasco is focused on developing the coal seam gas resources of the New South Wales Clarence Moreton basin. Over the past 5 years, coal seam gas has become a recognized and important source of natural gas for energy consumption on the east coast of Australia. In Queensland, coal seam gas is now supplying 25-30% of gas consumed.

The location of the Company's activities is regarded as strategic as it is well located to supply both gas and gas fired power to northern New South Wales and southern Queensland. The area that the company is seeking to supply gas or gas fired power into is an area that has no local electricity generation or gas supply. It has the attraction of being one of the last energy market "gaps" on the east coast of Australia with one of the fastest population growth rates in the country. The Metgasco project is located 70 km south of Coolangatta and is one of the closest gas occurrences to Brisbane and the Gold Coast.

Project Overview

Mitchell Drilling completed a 6 well appraisal drilling program for Metgasco to assess the CSG production potential of the Walloon Coal Measures in the Casino area. The vertical wells were drilled at 8 1/2" to 650m with our Soilmec G-55 semi automated CBM rig.

A variety of completion techniques were used including under-reaming of the target Walloon Coal Measures. In addition to supplying drilling services, Mitchell Pipeline and Infrastructure supplied and installed water and gas delivery systems for each well. These systems consisted of a downhole PCP pump, gas driven reciprocating engine hydraulic power packs, surface pipe work and monitoring systems.

Mitchell Pipeline and Infrastructure's experienced technicians managed the drawdown of the wells through to gas production.