Based on data from earlier wells, the lease contains a proven and probable shut in reserve of 3 BCF of gas in place with approximately 2.7 BCF recoverable. The gas content is pipeline quality after treatment and also contains condensate.
The Niagaran reef was previously drilled in the late 1980's and early 1990's but was shut in due to hydrogen sulphide emissions and the absence of appropriate treatment technologies. Meridian's proposed use of 'sulphur treat' towers, a technology now widely used for this type of gas treatment has been accepted by the Michigan Department of Environmental Quality (DEQ).
Flow rates on the previous wells averaged between 2 to 4 mmcf per day plus
condensate and Meridian anticipates achieving similar flow rates from its
proposed new well location. The bottom hole location of the new well will remain the same as the previous wells but will be accessed from the surface via a directional drilling leg.
The proposed new well location is on a partially used asphalt pit adjacent to a
major gas pipeline.
Anthony Mason, Chief Executive of Meridian said:
'We are delighted to have signed up this significant shut in gas reserve in
Michigan State. Subject to permitting and equipment availability, we expect to begin drilling operations early in the second quarter of this year.'
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