Triple Energy's China Coal Seam Gas Well Disappoints

Australia’s Triple Energy on Monday said its Niaoshan-1 coal seam gas well in Aolong joint venture project in China has disappointed.

“The joint venture has now received the preliminary desorption core data results for this well. It is interpreted that the coal seams intersected in this well do not have sufficient gas content for the well to be commercial,” the company said in a statement.

Triple Energy spudded Niaoshan-1, the first of two CBM wells in the Bird Mountain area of Heilongjiang province in China. The well was targeting several major coal seams for intersection which were cored for desorption analysis and tested. The second well of 2015 will follow with the same rig once operations at Niaoshan-1 are complete.

Triple Energy holds an 80 percent interest in a Cooperative Joint Venture (CJV, known as Aolong Energy) with LongMay Coal Mining Company, one of China’s largest State-owned coal mining companies. The CJV has the objective of degassing the coal mining leases held by Longmay and has a life of 45 years.