Lucas has been responsible for exploration and production drilling since Sydney Gas began its Camden Project in 2001, successfully developing the gas resources of the Sydney Basin’s enormous coal deposits.
Lucas was chosen in November 2004 to develop and design a pilot SIS programme to demonstrate the technical and commercial feasibility of SIS gas production at Camden.
A six month technical and engineering study followed:
- Transforming all existing geological data to MGA94 coordinates and combining them into a single database using Geographix software;
- Drilling and engineering study, pilot location selection, well design, well geometry, torque, drag and hydraulics modelling, overburden and inseam drilling, drilling fluid programme, drilling hydraulic analysis, casing and cementing specifications, plant and equipment recommendations and operational risk assessment; and
- Detailed cost estimate.
The programme proceeded and the chairman of Sydney Gas stated in their 2007 annual report that “the decision to use SIS as an application to develop the Camden Gas project has proven a success for the company”.
In January 2008, Lucas and Sydney Gas entered into a joint arrangement for the further exploration and commercialisation of Sydney Gas’ assets in the Sydney Basin. The arrangements include:
- a placement by Sydney Gas to Lucas of 15% of its issued share capital;
- a three-year technical services agreement for Lucas to provide:
- Exploration planning services, such as land access, geological modeling, geological evaluation and assessment, geophysical studies and assessment, drilling engineering and planning;
- Exploration implementation services, such as oversight of HSE, safety and environmental management, implementation of field work programmes, day to day supervision of field activity, daily and other reporting, production reporting and other technical assistance;
- A two-year drilling services agreement for Lucas to provide and operate two or more drilling spreads.
In January 2009, AGL bought Lucas' shareholding, which had increased to 19.9% over the year, as part of its acquisition of Sydney Gas.