Comet Ridge Updates On Galilee Basin Exploration Activities

Comet Ridge has updated on its current exploration activities in both the Galilee Basin in central Queensland and on its pilot project in PMP50100 West-coast, New Zealand.

Since the exploration permits ATP 743P and ATP 744P in Galilee Basin were awarded to Comet Ridge last year, one exploration well has been drilled in each of the permits to increase the understanding of the significant coal seam gas (CSG) potential of these blocks. The company holds a 100% interest in the permits.

The second of these wells, Shoemaker 1, was drilled in the central portion of ATP 744P, intersecting approximately 20mt of coal and a significant section of carbonaceous mud-stone. Two successful drill-stem tests were run over coal intervals before the well was plugged and abandoned as planned and the rig released.

The company added that due to the influence of cyclone Olga and the more recent heavy rainfall in the central Queensland area, a resumption of drilling operations has not yet been possible. As soon as heavy vehicle road access in the permit areas is possible, drilling operations to appraise the coals in these tenements will recommence.

The company further added that in late 2009, the Macdonald 5C exploration well was successfully drilled and tested in the Greymouth area of New Zealand’s West-coast. Results from this well enabled design and planning work over the past two months for the first two pilot wells, Macdonald 4P and Macdonald 6P.

According to the company, the drilling, completion and pumping equipment has been sourced and construction of the access roads and well pads for these two pilot wells has commenced in preparation for drilling the wells in March.

This drilling and pilot testing operation is being operated by Chartwell NZ, a wholly-owned Comet Ridge subsidiary, as part of the Phase 2 Farm-in program which will earn the company a further 30% equity interest in the permit. Chartwell NZ is the operator of PMP 50100 and currently holds a 20% equity stake in the permit with the remaining 80% being held by Macdonald Investments.