AUSTRALIA: Queensland Pacific Metals Ltd (ASX:QPM) has announced the start of drilling operations for seven new production wells at the Teviot Brook South area in South East Queensland.
This initiative is part of the company’s ongoing production growth strategy and signifies a significant development in its commitment to enhancing output capabilities.
The Teviot Brook South Well Program involves the installation of seven new Surface to Inseam (SIS) well pairs.
Each pair comprises a vertical production well linked with a lateral well drilled within the Goonyella Middle Seam.
The innovative drilling plan aims to optimise gas extraction over an average lateral exposure of approximately 1,000 metres to the coal seam.
QPM CEO David Wrench stated: “The Teviot Brook South program will be the first new owner-drilled wells for the Moranbah Project in many years. We are excited about the increase in production these wells will deliver, providing a significant step change in the business for QPM Energy.”
Strategically positioned in a highly productive sector of the MGP field, the new wells are set to leverage the proven output of adjacent wells, ensuring robust production and efficiency.
The drilling schedule aims to complete all vertical wells by the end of June, with lateral drilling taking place from July to September.
Full operational status for these wells is expected by the end of the December quarter, following the installation and commissioning of necessary pumps and surface equipment.
The new wells are designed to initially ramp up to peak gas production before transitioning to a stable long-term output phase, akin to many existing wells across the MGP field that have demonstrated sustained productivity for over 15 years.
Alongside the new drilling program, QPM has continued to enhance its existing well infrastructure through an aggressive workover program.
Over the past six months, the company has successfully returned 22 previously offline or suspended wells to production, increasing the total number of producing wells from 96 to 118 since the acquisition in September 2023.
Funding for both the Teviot Brook South drilling program and ongoing well workover operations is secured through the Dyno Nobel Development Funding Facility, ensuring that QPM can expand its production capacity without financial impediment.