The Galilee corehole program is designed to systematically explore the large ATP813P permit (around 6,185 square kilometers) and specifically investigate the Permian aged Betts Creek and Aramac Coal Measures. The aim of the initial 10 well coring program is to establish coal distribution across the permit, together with gas content and permeability data and then identify a suitable site or sites for the drilling of pilot production wells.

The Galilee basin is under explored for CSG, however, early efforts by Enron in the late 1990’s did identify the potential of the Betts Creek and Aramac Coal Measures as CSG targets with the drilling of the Rodney Creek pilot wells. Subsequently AGL farmed into Galilee Energy’s acreage, immediately west of ATP813P, and is undertaking a significant work program which includes the drilling and production testing of a five well pilot well program to the south east of the old Rodney Creek wells. Activity in the Galilee basin is set to ramp up significantly over the next few months as successful applicants from the 2008 acreage gazzetal round begin implementing there work program.

This program follows on from the recent study undertaken by RLMS and Blue Energy reviewing gas pipeline options, and is consistent with the convergence of startegies between Blue Energy and its new strategic investor, Korea Gas Corporation (KOGAS).

Meanwhile in ATP896P (in the Surat Basin) the Oakey Power 1 well, which spudded on October 6, 2009 has reached a depth of 497 meters and has acquired wireline logs and is now being plugged and abandoned as planned. On completion of activities at Oakey Power 1 the Lucas-Mitchell Rig 180 will undergo scheduled maintenance then commence mobilizing to the Galilee basin to start the ATP813P.

Analysis of the drilling results in ATP896P is now underway to establish if there is merit in commencing pilot production well drilling.