Agenda

Masterclass Day: CSM Drilling & Completion June 29, 2009, 9.00 - 5.00

CSM Drilling and Completion methods of successful coal seam methane projects vary widely. It is important to understand the pros and cons of the different techniques in order to select the best procedures. It is often necessary to evaluate a number of methods in order to optimise cost and performance.

This course discusses how to drill and complete CSM wells. Guidelines and costs are presented. CSM Production and Development uses the same methods as conventional production but with some unique challenges. This course discusses the production characteristics and surface facility needs and then examines how all of the CSM components come together in a testing and development plan.

Specific topics to be covered:

CSM Drilling and Completions

• Drilling objectives
• Coal properties and fracture theory
• Drilling practices
• Completion types and design
• Well planning
• Completion treatments (job pumping)
• Drilling types
• Completion practices
• Horizontal wells
• Treatment evaluation
• Completion objectives

CSM Production and Project Development

• Reservoir variation, fairways
• Reservoir characterization
• Formation damage mechanisms and mitigation
• Gas in place & recovery
• Artificial lift
• Production analysis and prediction
• Water management
• Project stages, success factors, risk, timeline, and cost
• Gas treatment and compression
• Production characteristics of coal basins

About your technical leaders

Steven W. Hennings, M.S., is a Senior Reservoir Engineer at Norwest Questa Engineering Corporation, Golden, Colorado, USA, with more than 25 years of domestic and international experience in a very wide variety of reservoir and production engineering roles. Mr. Hennings specializes in reservoir characterization, reservoir modeling, and field evaluations for gas and oil development projects. His primary focus for the past seven years has been on Coalbed Methane, Coal Mine Methane, and Mature Fields development. Hennings holds a Bachelors degree in Petroleum Engineering and a Masters degree in Finance.

Scott Thomson, B.Sc., M.Sc., M.B.A. Managing Director, Norwest Energy Consultants, Australia, has more than 30 years experience in coal seam geology, exploration, and the practical application of geophysical methods to mine problems.
He has worked as a private consultant in the resource industry since 1998 specializing in coal seam gas and technology development. Mr.Thomson has managed several small service businesses in addition to being involved in the development of advanced geological, drilling, and geophysical technologies. Over the past ten years, Scott's focus has been on private consulting and research activities related to coal seam gas, geology, and drilling technology.

BRIEFING DAY - June 30, 2009

"South Island CBM will likely be used to provide thermal power generation to address the substantial power generation shortfalls experienced on the South Island in New Zealand over the last few years."
Upstream, March 3, 2009

9.00 Official Conference Welcoming remarks from IIR and chair
Dr. Rob Whitney, CEO, CRL Energy and Chairman, NZ Energy Federation

FOCAL POINT: THE BURGEONING ROLE OF NZ CSG

9.10 KEYNOTE ADDRESS: The outlook for New Zealand's energy industry, with emphasis on opportunities for coal seam gas now that the new government has changed energy policy
The Hon Gerry Brownlee, Minister of Energy and Resources & Minister for Economic Development, New Zealand Government

9.40 Tapping New Zealand's CSM fields

• History of CSG Exploration in NZ
• Methods and approaches
• New Zealand specific CSG exploration considerations
• Where we are up to and where to from here?

Dr James Pope, Manager Geology Group, CRL Energy

10.20 Morning coffee for conference attendees

10.50 Prospects and opportunities for New Zealand CSG

• General attributes of New Zealand coal seam gas resource lays
• Energy market factors
• Services required for successful appraisal and development

Dr. Mac Beggs, Managing Director, Geosphere

EXPLORATION AND PROJECT UPDATES FROM NZ OPERATORS

11.40 Case Study: The Challenges of CSG Development in NZ

• Cost of drilling, well completion and infrastructure.
• Complex geology and CSG conditions
• Limited access to markets (esp South Island)
• Environmental regulations
• Huntly development

Grant Redman, CSG Manager, Solid Energy

12.10 Case Study: L&M Coal Seam Gas

• Perspective from New Zealand's most active explorer
• Current exploration and appraisal programme
• Coal Seam Gas - A new industry for the South Island

Kent Anson, Chief Executive, L&M Coal Seam Gas Ltd

12.50 Lunch for speakers and delegates

2.00 Case Study: Chartwell Energy

• Chartwell Energy is farming into an exciting coal seam gas appraisal project in the Greymouth area of New Zealand
• Chartwell's objective is to become the largest coal seam gas company in New Zealand contributing significantly to New Zealand's energy needs

Tor McCaul, Chief Executive, Chartwell Energy

APPLYING LESSONS LEARNT FROM AUSTRALIAN CSG EXPERIENCES

2.40 CSG utilisation as embedded generation
Greg Columbus, Managing Director, Clarke Energy

3.20 Afternoon coffee

3.40 Case Study: Lessons learned in Environmental management of CSG assets

Ralph Gunness, Corporate Environmental Manager, Arrow Energy

TECHNICAL CHALLENGES

4.20 Technical evaluation of New Zealand coals for CSG

• Review of gas properties from selected NZ CSG basins
• Controls on gas volumes in Huntly coals
• Data integrity: sampling and uncertainty
• Implications for CSG development
• Potential for ECBM/CO2 sequestration in the Huntly coalfield

Tennille Mares, PhD Candidate, University of Canterbury

5.00 Drinks and Discussion Forum: Moving towards CSG as a viable force in New Zealand Energy

5.30 Close of Conference