Along with the mine management of CCL 379 and CCL 703, Metropolitan Coal Mine, the JV is currently engaged in a three hole program of 1,761m of core drilling to assess in more detail the overall CBM potential of these leases.

 

The program was originally designed by the mine management to assess coal quality and gas content/gas composition of the presently mined Bulli coal seam by coring that seam in the western section of the mine workings as part of the mine's ongoing 5 to 10 year development plan.

 

At its own cost the Joint Venture has joined with the mine management to deepen and core the lower un-mined seams below the Bulli, i.e. all the remaining seams of the Illawarra Coal Measures, to assess their gas contents and gas compositions and share all analytical data from the core program.

 

The first hole, Excel Metropolitan DDH3, was completed late last week and terminated in the Erins Vale Formation. Preliminary results show significant, encouraging gas contents and methane gas compositions for the deeper coals.

 

A program of widely spaced core holes in southern adjoining PEL 444 and PEL 442 is now being planned by the operator, Apex Energy, in the next 3-6 months. This program will again test all the remaining un-mined seams below the Bulli Seam in the Illawarra Coal Measures for gas content and gas composition.

 

Data from these programs will be used to increase confidence in present Most Likely P50 (128 billion cubic feet) in place gas estimates for all the leases and to advance local power generation schemes within the leases.

 

The first of these power schemes is being planned on the Metropolitan Mine site using initially part of the 4.5 million cubic feet of gas per day currently being drained from the Bulli Seam ahead of mining. Apex Energy is the new vehicle for Mosaic Oil founder, John Carmody.

EnergyReview.net, July 7.