The Niaoshan-1 coal gas well in the Bird Mountain area is about 2km from the previous Xian Xian-1 well the JV drilled in 2013 which, it turned out, was not drilled in an optimal spot.
Set to be drilled to 1300m in six weeks, Niaoshan-1 is targeting several major coal seams for intersection which will be cored for desorption analysis and tested.
Triple, an Australian junior, has an 80% stake in the coal mine gas project in China, with LongMay owning the other 20%.
Aolong, the JV formed by Triple and LongMay, was formed to de-gas the coals in LongMay’s coal mining operations in the Daqing coal basin.
Triple believes the project has the potential to establish a meaningful gas production business in the near term, providing successful results from the upcoming drilling campaign are achieved.
The company says there is understood to be “an immediate market” for any gas that may be produced at a price of around $US7+ per million standard cubic feet of gas.
“The prospects to grow the gas market in the area are believed to be considerable given the growing demand for electricity in the Heilongjiang region,” Triple said.
