Metgasco advises the following update on the Company’s current drilling and exploration program.
Kingfisher E01 Stimulation Program
Since the last operations update on 17 November, the Company has made good progress at Kingfisher E01 in removing liquid introduced during the stimulation treatment. Approximately 85% of the fluid has been removed and the well is currently producing gas and introduced fluid to surface. At this stage, the gas rate cannot be reliably measured due to liquid interference. Metgasco will continue to clean up the well with the goal to establish a stable gas flow rate from this interval (at 1450 metres). Once the liquid has minimal impact on the gas flow, Metgasco will perform a production test on this interval and develop an appropriate forward program.
2010 MET10 2D Seismic Survey now complete
Metgasco has now completed the 2010 MET10 2D seismic program. Despite heavy rains and widespread unsuitable ground conditions, the Company has successfully acquired 124 line km of new seismic data. The seismic program has met most of the primary objectives of the Company in obtaining data to assist in delineating the Eden Creek trend and in addressing structural closure on the Mackellar North (146 Bcf PMean, 1,793 Bcf P10), Wedgetail (105 Bcf PMean, 1,060 Bcf P10) and Coaldale (201 Bcf PMean, 2,273 Bcf P10) leads. The Company also acquired seismic lines that will assist in establishing if the Kingfisher gas field is connected to the Rappville structure to the south. This program also satisfies all current work program commitments to seismic data acquisition in PEL 13 and PEL 426. Seismic processing and interpretation are currently underway.
South Casino 11 (PEL 16)
Metgasco has commenced drilling an appraisal well, South Casino E11, in the Casino Gas Project area. This is a vertical well designed to intersect the Richmond coal seam using alternative drilling and completion techniques to reduce formation damage. South Casino E11 spudded on 29 November and is currently at 66 metres.
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Source: Metgasco , December 1, 2010;