The first three core wells, Bogle-1, Mt Linton-1 and Belmont-1 aim to evaluate the Beaumont formation coals previously encountered in the Goodwin-1 and Wairaki-1 wells.

The coal seam gas (CSG) drilling campaign will see up to a further four wells drilled in 2009, including stratigraphic wells which are designed to confirm the extent of the Beaumont coals in each of the Takitimu North and Longwoods coal trends.

The drilling campaign is designed to confirm the coal seam gas potential in the company’s onshore Western Southland basin permits, which initial analysis indicates may hold up to 300 PJ of CSG potential resources.

There are a number of commercialization options being explored for any CSG that is discovered and discussions are ongoing with potential end-users for the gas.