Adelaide, May 5, 2006 AEST (ABN Newswire) - Molopo announced that drilling at the new coalbed methane exploration corehole, LMGC1, has been successfully completed to a total depth of approximately 937m.
The well intersected the main coalbed methane target interval within the Craven and Avon Subgroups of the Gloucester Coal Measures. Approximately 20 metres of gassy coal with six main target seams has been encountered within this interval. The Bowen Road Upper seam at approximately 7.2m thick was the thickest coal intersected at a depth of 668m.
The gas volumes recorded on site from core samples taken from the Bowens Road Upper seam show significant gas volumes at this depth over short time periods, which suggests the seam could have appreciable permeability. Coal cores will be tested for total gas content and gas composition, with results expected in June.
The main coal seams in this hole will be subject to permeability testing, with results available in July after a second corehole has been completed.
This well was situated approximately 5km from the Stratford Prospect where nine previous CBM cored wells have already demonstrated an estimated gas-in-place resource of 90PJ in a 5km2 area. The Lucas rig will now move to a second well site where drilling is expected to commence in mid May. This second cored well with seek to extrapolate the resource base to the north.
In addition to the two new cored holes, the joint venture expects to resume production testing of the LMG03 well this month. This well had reached 667,000 standard cubic feet/day, before testing was halted to replace a pump.
The Gloucester Basin permit is located approximately 100km north of Newcastle, a very desirable market for gas where premium prices could be expected. The permit covers an area of 1,050 km2.
Molopo's joint venture partner in the Gloucester Basin project is Lucas Coal Seam Gas Pty Limited (70%), which is also the project's operator. Molopo's interest in this Permit is 30%.
Source:
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
Contact
Ric Sotelo
Chief Financial Officer
www.molopo.com.au
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