The well was planned as an 38km updip stepout from the previous well, CBM 107-00, following the intersection of over 130mt of coal in the previous well.
Central holds a 70% interest and is an operator of EP 107 where its wholly-owned subsidiary Merlin Energy has joint ventured with Petroleum Exploration Australia (20%) and Red Sky Energy (NT) (10%).
CBM 107-002 encountered first coal (c 3.5mt) at 238mt, now thought to be Triassic in age. The top Permian (Purni Formation) coal was encountered at 294mt.
Previous independent reports have estimated the total tonnage of coal above 1,000mt as being over 600 billion tonnes in the JORC ‘Exploration Target’ category within Central’s wholly owned subsidiary, Merlin Minerals mineral leases and over 1,000 billion tonnes above 1,000mt in the same category in Central’s petroleum leases in the same area.
Desorption tests over coals encountered in CBM 107-002 well have not been completed as yet and all wells drilled in the 2009/10 coal seam gas/coal program will be subject to a review by Netherland, Sewell & Associates as to the potential of the coals encountered to host coal seam gas. This report may not be completed until six to eight weeks after the last CBM well in the current program, CBM93-002, is completed.
These preliminary results are subject to further review as more data comes to hand. The operation will now be completed at CBM 107-002 and the equipment rigged down prior to relocating to the next coal seam gas/coal well in the program, CBM 93-002.
