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Energy
Gas flows from Pure Hydrogen’s Venus-1 pilot well in Queensland continue to improve with just 314 barrels of water produced to date.
The encouraging early gas breakout confirms that high gas saturations are present within the target upper Jundah Walloon coals with flow rates expected to increase as the control pressure drawdown advances.
Adding interest, the amount of water produced to date is miniscule compared to the typical volumes produced by other coal seam gas wells.
Pure Hydrogen (ASX:PH2) will continue flow testing of Venus-1 until the end of August as planned with engineering modelling of various methods – designed to improve reach integrating using the flow test to date – already indicating that commercial gas flows can be achieved.
“Pure Hydrogen is pleased with the progress to date on Venus 1 as the flow testing continues,” managing director Scott Brown said.
“The program is still in its early stages but the results are highly encouraging.
“We can see a clear pathway here to commercial gas flows and the certification of material gas reserves of Project Venus. Gas prices on the east coast are on the march with prices rising dramatically in the last few months.”
Project Venus is located in central Queensland and has a best estimate contingent resources (2C) of 130 petajoules (PJ) of gas.
Should the company prove that commercial gas flows from the well, it will then be able to progress the conversion of the contingent resource to reserves, which will underpin a gas sales contract.
Gas from the project could also be used as feedstock for the company’s CSG to hydrogen production facility and hub.
This article was developed in collaboration with Pure Hydrogen, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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