Pure Energy named preferred tenderer for Qld CSG tenements

South Perth-based Pure Energy Resources Ltd has been named the preferred tenderer for two Queensland coal seam gas permits, and will hold both the CSG and rights on granting of the permits, the company has announced.

The full text of a company announcement is pasted below

The Directors of Pure Energy Resources Ltd (Pure or the Company) are very pleased to announce the Company has been named Preferred Tenderer for application permits ATP889(A) and ATP965(A) in Queensland in the recent bidding round.

HIGHLIGHTS

• The Glenora block of ATP889(A) lies within 3km of both Santos Ltd's (Santos) Coxon Creek Coal Seam Gas (CSG) Field and Sunshine Gas Ltd's (Sunshine) Lacerta CSG field.
• The Lacerta CSG Field recently reported 1P, 2P, 3P reserves of 1.7, 224, and 895 Petajoules (PJ).
• Pure plans to move quickly into an appraisal and pilot program in ATP889(A), expected to commence on granting of these permits.
• ATP965(A) lies in the same structural position and in close proximity to other producing Walloon CSG fields, such as Tipton West and Daandine.
• Both ATP889(A) and ATP965(A) also have both conventional oil and gas prospects.
• Pure will hold 100% interest in both the CSG and conventional rights on granting of these permits.

QUEENSLAND APPLICATION PERMIT ATP889(A)

The application block ATP889(A) covers an area of approximately 500 km2 of highly prospective acreage, and further expands Pure's already extensive Queensland CSG acreage (Figures 1 and 2). This new permit would greatly enhance the Company's position in the Walloon CSG Play Fairway, which is proven to be productive and prolific in directly adjacent CSG fields, and is close to existing infrastructure and growing energy markets.

The Glenora block of ATP889(A) (Figure 2) lies within 3km of both Santos' Coxon Creek CSG Field and Sunshine's Lacerta CSG field (which as repored contains 1P, 2P, and 3P reserves of 1.7, 224, and 895 PJ respectively). One of the Lacerta pilot wells is within a few hundred metres of ATP889(A)'s western boundry.

The coal seams within Walloon Subgroup are well developed, in both the Juandah and Taroom coal measures, with strong indications of gas throughout the entire coal measures recorded in previous wells drilled within the permit area. These seams are known to contain commercial gas contents and productivity based on the Lacerta and Coxon Creek Gas fields immediately to the west.

The anticlinal trends on which the major fields of Fairview-Spring Gully and Lacerta-Coxon Creek lie, continue through ATP889(A) and these could prove excellent for enhancement of coal permeability.

Based on existing wells and seismic coverage, CSG targets have already been identified and the Company plans to proceed directly to drilling on granting of the permit.

ATP889(A) also has exploration potential for conventional gas and/or oil fields. The permit overlies both the Bowen and Surat Basins. The Bowen Basin is considered prospective for oil and gas in the Triassic Showgrounds Sandstone Tinowon Formation and Lorelle Sandstone, and the Surat Basin for oil and gas in the Jurassic Precipice Sandstone and overlying Evergreen Formation.

Pure Energy will hold 100% interest in both the CSG and conventional rights on granting of this permit.

QUEENSLAND APPLICATION PERMIT ATP965(A)

The application block ATP965(A) covers an area of approximately 1200 km2 of highly prospective acreage (Figure 3). The permit overlies the central Bowen and eastern Surat basins and lies in a similar structural position and in close proximity to producing Walloon CSG fields such as Tipton West, Kogan North, and Daandine (Figure 3). The Moonie Oil Field is located approximately 40 kilometers to the west.

The Company believes there is potential for a number of exploration plays in this permit. Sediments of the Surat Basin may be prospective for oil and gas in the Jurassic Precipice Sandstone and overlying Evergreen Formation.

Prospective structuring is present within the Walloon Subgroup of the Surat Basin sequence and this will be the target of early CSG exploration.

The Walloon Subgroup was intersected in all wells across the application area, with individual coal seams up to 6m thick. The gross Walloon Subgroup is approximately 300m thick and net coal is estimated to be in the order of 10-30m. Strong gas shows were recorded in the Walloon Subgroup at Dunmore Creek-1 and are testament to the gas generative capacity of these coals. The coals are at depths prospective for CSG and will be the main focus of early exploration and appraisal.

Pure Energy will hold 100% interest in both the CSG and conventional rights on granting of this permit.

PURE ENERGY RESOURCES LIMITED - OVERVIEW

Pure listed on the ASX on September 12, 2006. Following the recent completion of a very well supported equity capital raising and share purchase plan, Pure is in a strong financial position to accelerate its proposed multiple well exploration campaign to assess its CSG prospects in both Queensland and Tasmania.

Pure holds a highly prospective and extensive range of Queensland CSG permits (covering approximately 21,100 km2, including granting of these applications), making it one of the largest CSG acreage holders in Queensland. Combined with its Tasmanian permit, Pure's CSG acreage covers an approximate total area of 32,400 km2.