13/05/2009 - 15:55

Strike Oil extends coal seam gas search

13/05/2009 - 15:55

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Perth-based Strike Oil has been granted a new exploration licence to explore for coal seam gas in the Cooper Basin in South Australia.

Strike Oil extends coal seam gas search

Perth-based Strike Oil has been granted a new exploration licence to explore for coal seam gas in the Cooper Basin in South Australia.

The licence approval is the company's first for coal seam gas (CSG) exploration in the Cooper Basin, with Strike already exploring for CSG in the Bowen and Galilee Basins in Queensland and the Gunnedah Basin in New South Wales.

 

The announcement is below:

 

Strike Oil Limited (ASX: STX) is pleased to announce it has been granted a new petroleum exploration licence, PEL 96, over its highly prospective Southern Cooper Project area in South Australia where it will be targeting coal seam gas (CSG).

Strike Oil will hold a 66.7% working interest in the 5 year licence which covers ground of more than 4,050 square kilometres in Australia's premier onshore conventional oil and gas region. The permit is immediately south of the Moomba gas production facilities and is close to substantial gas infrastructure servicing South Australia, Queensland and New South Wales.

The licence is also the first granted under the Yandruwandha/Yawarrawarrka Native Title Petroleum Conjunctive Indigenous Land Use Agreement.

Previous drilling and seismic indicates coal is present over an area of more than 1,800 square kilometres. Initial assessment work based upon coal seam intersected in two petroleum exploration wells (Tinga Tingana 1 and Weena 1) and the interpretation of seismic modelling estimate 8 to 20 trillion (TCF) cubic feet of prospective CSG resources.

Strike Oil and its joint venture partner, Australian Gasfields Limited (33.3% working interest), are currently planning a drilling programme for the prospect with the intention of securing regulatory approvals for commencement of drilling in the September quarter.

The program will be designed to evaluate the gas content and productivity characteristics of the coal as an input to the future reserve and resource assessments for the project.

Simon Ashton, Strike Oil Limited's Managing Director, said:

"We are delighted at the granting fo this new exploration licence in what is undoubtedly Australia's premier onshore conventional oil and gas region and to be an early coal seam gas player in the area. Strike Oil is uniquely positioned to capitalise on the favourable market outlook for coal seam gas companies with a fast track exploration and development strategy with drilling planned to commence in the September quarter.

"We were particularly attracted to the location, close to major pipeline infrastructure and the encouraging findings of previous drilling and seismic work in the area," he said.

Stewart Elliot, Australian Gasfields Limited's Managing Director, said:

"As 33.3% joint venture partner in PEL 96 with Strike Oil as operator, we are delighted that this exploration licence has been granted. We are fully supportive of Strike Oil in its planning to secure regulatory approvals and enable drilling of this exciting prospect to commence in the September quarter."

 

 

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