TX 75083-3836, U.S.A., fax +1-972-952-9435. AbstractRecord breaking oil prices and the forecasted upward pressure on gas prices form an exciting future for Australia's hydrocarbon industry. This commercial back-drop is creating a heightened interest in new technologies capable of improving recovery factors and accelerating production particularly in brownfield environments.

Historically, horizontal wells in coal seam gas (CSG) producing areas of Australia have been limited in their ability to stimulate horizontal wellbores with hydraulic fractures, despite most basins being in favourable stress states capable of generating multiple transverse hydraulic fractures. In some cases, overlapping mining tenements limit the ability to effectively deploy steel casing completions to effectively manage multi-stage fracture stimulations along the lateral. In other cases, potential wellbore instabilities preclude the placement of laterals with adequate length to stage numerous fractures required to make a well economic. Strike Energy’s Jaws 1 well indicated well instability when drilling horizontally in the Patchawarra Vu Coal Seam in Petroleum Exploration Licence 96 of the Weena Trough in the Cooper Basin. To overcome this instability, Strike Energy introduced the application of an innovative process of deploying multiple, indirect hydraulic fractures in Jaws 1ST from a horizontal wellbore underlying the coal. Microseismic and surface deformation tiltmeter data acquired during the treatment confirmed the successful placement of fractures in the Patchawarra Vu Coal Seam. Further, chemical tracing and production testing provide further insight into the placement and effectiveness of the overall stimulation. Through analyses of data from the Jaws 1ST, we provide insight and recommendations regarding horizontal well placement to improve indirect hydraulic fracture effectiveness. These recommendations would be applicable for other Australian CSG basins where direct horizontal well drilling and fracture stimulation has been limited (e.g. overlapping mining tenements) or where horizontal well instabilities limit drilling within the seam (i.e. Cooper Basin, depleted coals).