The transformation of Australia’s first commercial CSG field into a major gas project: how innovation and subsurface understanding has driven its success
Justin Gorton A and Mike Martin A *A Westside Corporation, Brisbane, Qld, Australia.
The APPEA Journal 62(1) 235-244 https://doi.org/10.1071/AJ21090
Submitted: 7 February 2022 Accepted: 21 February 2022 Published: 13 May 2022
© 2022 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of APPEA.
Abstract
Mount Isa Mines Limited discovered coal seam gas (CSG) in the ‘Dawson Valley’ in 1991. It was the first commercial coal seam gas field in Australia, with production and sales of gas commencing circa 1994, then operated by Conoco and known as Meridian SeamGas. In 2010, Westside Corporation acquired a 51% operating interest in Meridian SeamGas from Anglo American (Anglo) and Mitsui Moura Investment Pty Ltd (MMI). Over the last 10 years, Westside has increased sales by 466% from 9 terajoules per day (TJ/d) to 42 TJ/d with gas being sold to both domestic and export markets. Further acreage acquisition to the north and south increased the asset area by 264%; now known as the Greater Meridian Fields (GMF). The steep rise in gas demand, complex market dynamics, regulatory environment, and competition from large global oil and gas operators makes it a challenging environment for smaller gas producers in Australia. Remaining agile and employing innovative approaches to optimise field development are key factors for Westside’s growth. In particular, the pad-based drilling of up dip multi-lateral wells has reduced cost and surface footprint, while enabling more efficient gas drainage. To support this field development, a more robust subsurface framework was required. Adequate knowledge of the distribution and variability of coal thickness, gas content/composition, structure, and geohazards forms the basis of the static model. It is used for resource definition and for the optimal planning and execution of multi-lateral wells, reducing drilling risks.
Keywords: Bandanna, Baralaba Coal Measures, Bowen Basin, coal seam gas, geosteering, lateral drilling, Meridian, Rangals, static modelling.
Justin Gorton is the G&G Team Lead and Principal Geologist for Westside Corporation. He has worked within the oil and gas industry for over 15 years in operational, technical, and leadership roles across the private and public sectors. A good part of his career has been spent directly overseeing exploration and appraisal campaigns across various basins in Australia to assess, discover, and mature coal seam gas and other unconventional resources. In his current role, he is responsible for leading the maturation and development of Westside’s Queensland assets. His qualifications include a Bachelor of Science in Geological Sciences from University of Oregon and Honours from La Trobe University in Melbourne. Justin is a member of the American Association of Petroleum Geologists (AAPG), The Petroleum Exploration Society of Australia (PESA), and past President of the Formation Evaluation Society of Queensland (FESQ). |
Mike Martin has a degree in Earth Sciences and PhD in sequence stratigraphy and sedimentology. He has spent the last 30 years working around the world in a variety of consulting and oil and gas company technical and leadership roles. He moved out to Australia in 2012, with BG Group, and has pored over the Surat and Bowen Basin sediments since 2009. He is currently the Geoscience Manager at Westside Corporation overseeing the development of their Greater Meridian CSG fields in the Bowen Basin, exploration and appraisal of other Bowen Basin ATPs and appraisal and development of their oil and gas fields in New Zealand’s Taranaki Basin. A member of AAPG since 1992, a Fellow and Chartered Geologist of the Geological Society (London) and recently joined PESA. |
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