WestSide, a Brisbane-based coal seam gas producer, reported yesterday that as Operator of the Meridian gas fields near Moura in Queensland’s southern Bowen Basin in Australia, it advised that the first phase of the field’s expansion is on track to start within one month when drilling commences on the first well of a six-well program. WestSide’s Managing Director Mike Hughes said the Phase 1 well program, involving six new production wells, would incorporate extensive recommended improvements in drilling procedures and practices to maximize drilling and production success. 

“Wells will be drilled, lined and completed in a single seam and drilled in areas where there is good knowledge of faults and depth control to enable a high confidence of drilling in-seam using global best practice steering techniques,” Hughes said. 

Key contracts for drilling, directional drilling services, cementing, completions, wireline logging, well-head and connection facilities and civil earthworks have all now been awarded. WestSide has contracted with Silver City Drilling, PathFinder Directional Drilling Services (part of Schlumberger Drilling Company) and Superior Energy Services for the critical drilling activities. 

Silver City Drilling is an Australian-owned company which has been successfully drilling lateral in-seam wells since 2006 for many companies, including Illawarra Coal, BHP Billiton, Xstrata Coal, Anglo American Coal and Metgasco. PathFinder Directional Drilling Services are the leaders in onshore unconventional directional drilling services as part of the global Schlumberger Drilling Company while Superior Energy Services is a global supplier of drilling products and services. Hughes said WestSide had also significantly strengthened the Company’s in-house drilling and development expertise in the past six months. “The combination of our strong in-house expertise with this skilled group of contractors provides WestSide with the requisite depth of experience and confidence to ensure the success of the Phase 1 Well Program,” Hughes said. 

WestSide and joint-venturer, Mitsui E&P Australia Pty Ltd plan to expand the Meridian gas field to supply increasing volumes of gas to GLNG (Gladstone Liquefied Natural Gas) from 2015. Under the terms of the sales agreement, up to 65 Terajoules of gas per day will be supplied from Meridian to GLNG over 20 years at an oil-linked gas price.