The BLEUE LORRAINE and BLEUE LORRAINE SUD permits were granted in November 2004 and July 2007 respectively. The permits cover a total of 988 square kilometres with the principal target of coal bed methane (CBM). The permits encompass a significant part of the Lorraine Basin which has historical coal production in excess of 850 million tonnes. The coal seams within the Lorraine Basin are of Carboniferous age and are characterised as black, gassy high ranking coals. Cumulative seam thicknesses commonly total 20 to 30 metres over 200 metre intervals and in places exceed 40 metres.

Research on the CBM potential of the permits continues to be greatly aided by the drill hole database and geological database of CdF. Over 600 stratigraphic wells have been drilled in the basin with many of the coal intercepts being tested for the methane content. While the western portion of the basin has many stratigraphic wells, the eastern and southern parts of the basin encompass a small number of exploration wells drilled for ESSO-REP and Enron Exploration France (‘Enron’). The company is building its own geotechnical data base which is based partly on the CdF information. 

During the 2011 financial year, principal activities focused on the planning and commencement of testing activities at Folschviller where 2 appraisal (or production test) well being drilled at a site 850 metres east of the town of Folschviller and immediately adjacent to the company’s previously drilled Folschviller St 1 stratigraphic well.

Two laterals and two sidetrack wells have been completed for a total of 433 metres of coal and a further 367 metres sediments. The target has been the coal of the Marie-Maurice-Noirel seam and the Alpha-Alpha’-Beta-Gamma seam.

Production tests completed, demonstration gas flow planned for 2011. These tests will be used to determine the commercial deliverability, and to evaluate the application of a lateral drainage strategy for appraisal and development of the Lorraine coals.

FULL FIELD DEVELOPMENT MODEL IN LORRAINE

EGL is planning for a specific methodology for production development to allow for minimal surface disturbance in this densely populated area. This methodology is beneficial in terms of cost-efficiency of the production system. It has been applied successfully at Mannville coals at Corbett Creek project in Alberta, Canada, with Trident and Nexen as operators. Successful lateral drilling is also employed in Australia with similar coals.

Cost effective lateral drilling production pads will be set up as central nodes in specifically located low-impact sites from which will emanate laterals attached at varying distances on mother bores. Each production pad could produce from approximately 13 mother bores, with between 4 and 6 laterals attached to each mother bore.

Resources CBM
The following table summarises the CBM contingent resources for the Lorraine project.

The estimates were conducted by the European Gas technical group under SPE and PRMS guidelines. The study allows for the planning and commencement of moving the contingent resources to reserve categories and the assessment of development and production options.

LORRAINE SUD

The Lorraine Sud permit area covers the immediate southern extension to the Lorraine permit. The area contains several anticlinal axes which in places are at depths suitable for CBM development. Analysis of the structure as exhibited on the seismic data shows that there is strong horst/graben development which in turn should result in improved permeability in the coals and more importantly in the sediments.

During 2010, MHA Petroleum Consultants undertook a study of contingent resources held within coals of the Alsting anticline. This anticline zone is one of two major anticline features crossing European Gas’s permit areas, covering 110 km² within the 788 km² permit area. Gas composition is estimated at about 90% methane from previous test work and the coal volumes were estimated from past drilling, correlated with coal mining activity. MHA’s work estimated contingent resources at C1, C2, C3 levels on the Alsting anticline area only. Further work is required to accurately establish flow rates and verify recovery parameters.