Media Release Denison Gas Commences New Drilling Program
-Denison Gas commenced a four well conventional gas development program on 2 May 2021.
-The wells will develop Proved plus Probable (2P) gas reserves close to existing infrastructure.
-The first well, Punchbowl Gully 3, is a follow up to the successful -Punchbowl Gully 2 well drilled last October.
-The program includes an option to drill two additional contingent wells.
Denison Gas Limited and its affiliates (together Denison Gas) are pleased to announce that Denison Gas (Queensland) Pty Ltd has commenced its second drilling campaign with the spudding of the Punchbowl Gully 3 well on Sunday 2 May 2021. The program comprises four conventional wells with an option for two additional wells to be drilled.
The conventional gas wells are targeting the undeveloped portion of Denison Gas’s over 100PJ of 2P reserves and have been funded by the combination of shareholder contributions and the Reserve Base Lending (“RBL”) facility announced in April. The well locations are in existing fields close to established Denison Gas infrastructure and will be connected into the production system shortly after completion.
Production from most of the wells is expected to commence in June to early July and is planned to increase production capacity by more than 30% and provide additional gas above Denison Gas’s existing gas sales agreement commitments. Incremental gas will be initially sold into the spot market and is being offered to potential East Coast Gas Market buyers under longer term agreements.
The CEO for Denison Gas, Robert Gard, commented on the announcement:
“Denison Gas has been planning this campaign since before we acquired the Denison North and South gas fields in 2019. It is a credit to the whole team who have contributed to the detailed planning and preparations and we are looking forward to a safe and successful program.”
About Denison Gas:
Denison Gas is a gas production and exploration company focused on both efficiently increasing its existing conventional gas production and developing the significant CSG resources within its Denison Trough tenement areas.
Since April 2019, the Company has operated 14 gas fields, 2 gas processing facilities, 4 additional gas compression facilities and a 200-kilometre gas pipeline network connected to the Jemena operated Queensland Gas Pipeline.
Following the restart of its Denison North project in early 2020, the Company embarked on a program to bring its remaining 2P conventional gas reserves into production, to fill its available gas processing capacity, to meet its executed gas sales agreements through to 2023, and to allow contracting of new gas sales. The Company will also commence a pilot well testing program focused on a portion of its contingent CSG resources to position itself to become a significant independent producer into the East Coast gas market.
More information regarding Denison Gas is available at www.denisongas.com.au or contact Robert Gard (CEO) at firstname.lastname@example.org or 02 9419 7657.
Easternwell Rig 101 commenced drilling on Denison Gas’s Punchbowl Gully 3 well on 2 May 2021.