The Walloon Coal Measures resource density: how low can we go?
Brent Glassborow A * , Michael Scott B and Steven Scott AA Australian Gas Company Pty Ltd, GPO Box 2376, Brisbane, Qld 4001, Australia.
B Independent consultant.
The APPEA Journal 63 11-24 https://doi.org/10.1071/AJ22219
Submitted: 16 February 2023 Accepted: 22 February 2023 Published: 11 May 2023
© 2023 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of APPEA.
Abstract
Coal seam gas (CSG) production began from the Walloon Coal Measures of the Surat Basin in 2005. Initial field developments were located within a high production fairway where resource densities are >3.5 PJ/km2. The majority of the Surat Basin CSG is produced by four major consortia with tens of billions of dollars invested in infrastructure. As a result, the industry directly contributes to >30 000 jobs within Queensland and is forecast to contribute >A$5.5 billion in royalties over the next 5 years. Gas offtake is dominated by the export LNG market with a consistent daily throughput of 3–4 PJ. Gross Queensland gas production exceeded 1500 PJ in 2020 with ~80% coming from the Walloon Coal Measures. Historical breakeven wellhead gas prices in high resource density areas in the Surat Basin have been reported as <$5/GJ for undeveloped 2P Reserves with access to infrastructure. Moderate resource density CSG potential in the Surat Basin which is commonly in the shallower margins was historically considered marginal or sub-commercial if the requirement for in-situ standalone infrastructure capital expenditure is factored into economical modelling. Therefore, the potential of these developments will require stakeholder cooperation via existing infrastructure. Accounting for natural decline in current fields, available capacity at existing facilities and pipelines, and the forecast impending east coast gas supply imbalance, the landscape and economics of Queensland CSG production is predicted to transform. The paper explores the lower limit of gas rates and recoveries, on a single well basis, in shallow, moderate resource density underdeveloped areas of the Walloon Coal Measures.
Keywords: coal seam gas, development economics, gas processing infrastructure and transmission, gas supply shortfall, production, resources and reserves, Surat Basin, Walloon Coal Measures.
Brent Glassborow is Founder and Director of Australian Gas Company Pty Ltd (AusGasCo). He has a BSc (App Geol) and a BSc (Hons), Petroleum Geology and Geophysics from the Australian School of Petroleum. Brent began his energy career in offshore drilling operations as a Logging Geologist and Logging While Drilling Engineer in Australia and the UK. He gained extensive coal seam gas experience in Queensland during the Queensland Gas Company’s initial field development subsurface operations. Brent progressed to Head of Subsurface Operations managing a multidisciplinary team responsible for delivering all subsurface data acquisition operations and analysis for exploration, appraisal and early stage field development programs. This was followed by various international portfolio management and technical positions for BG Group including Global Subsurface Technology Manager, managing subsurface projects on five continents. In 2016 he co-founded a consultancy company with Steven Scott. Brent is a member of PESA, SPWLA and SPE. |
Michael Scott is a Consulting Petroleum Engineer with nearly 20 years of experience in the industry. He studied Mechanical Engineering at the University of Queensland and then went on to complete his PhD in Aerospace Engineering in 2005. In the same year he joined the Queensland Gas Company as a Petroleum Engineer where he spent 7 years in a range of subsurface roles. In 2012 he joined Senex Energy, where his most recent role was as the Production Engineering Manager. Following this, in November 2018, he joined the Petroleum and Gas Inspectorate where he worked for three and a half years and was the Executive Petroleum Engineer (Well Operations) when he left. Michael is a member of SPE and Engineers Australia, is a Chartered Professional Engineer and RPEQ. He also has a Certificate III in Dog Behaviour and Training. |
Steven Scott is Founder and Director of Australian Gas Company Pty Ltd (AusGasCo). He has a BSc(Hons), Geology and Mineralogy from the University of Queensland and a PhD from James Cook University. He has over 40 years of experience in coal exploration; conventional and unconventional oil and gas; and CSG exploration, appraisal and development in Australia and internationally. Steven began his career with the Geological Survey of Queensland, working in both the Coal Exploration and the Petroleum Resources sections. In 2000 Steven joined the Queensland Gas Company as Senior Geologist, progressing to Vice President, Exploration and Technical Services. In 2010 he joined Senex Energy as General Manager, Exploration. In 2016, with Brent Glassborow, he co‐founded a consultancy company, offering integrated technical, project management and business development services and consultancy to the petroleum industry. Steven is a member of AAPG, PESA and GSA, and is a registered Petroleum Geologist. |
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