Eastern Star Gas: Initial Resource for PELs 6, 427 and 428 (Australia)

 

Eastern Star Gas Limited as CSG Operator of Joint Ventures in PELs 6, 427 & 428, located in northern NSW with Orion Petroleum Limited and Comet Ridge Limited is pleased to announce the first independent assessment of the coal seam gas resources in these licences.

*A Binding Heads of Agreement was signed on 14 October 2010 to transfer the Davidson Prospecting Pty Ltd (DP) 20% interest in PEL428 to COI.

The resource estimates provided in this statement were determined by Mr Timothy L. Hower of MHA Petroleum Consultants LLC in accordance with Petroleum Resource Management System guidelines. Mr Hower is a full-time employee of MHA, is a qualified person as defined under the ASX Listing Rule 5.11 and has consented to the use of the resources figures in this announcement.

The estimate of resources was generated following nearly three years of exploration activity by ESG across the licence areas including coreholes and seismic. These data were combined with preexisting well and seismic data to delineate the resources in these areas for the first time. In particular, we are excited to note the interpretation that the Black Jack Formation and Maules Creek Formation resources identified by the Edgeroi-1 and -2 coreholes in PEL 238 continue into southern PEL 427.

 

In the immediate term, ESG’s appraisal and development field efforts will focus on the Narrabri Gas Project in PEL238 while a programme to convert these resources to reserves is designed.

Mr David Casey, Managing Director of ESG, said: “As Operator, ESG has applied its significant CSG experience in the unique conditions of the coals of the Gunnedah Basin, to the Joint Ventures’ permit areas. The resource estimates released today are testament not only to the success of our recent exploration programme, but also to the significant upside that exists for continued gas reserves growth for ESG in addition to the Narrabri Gas Project in PEL238 which already has 3P+3C of 9,012 PJs.”

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Source: Eastern Star Gas, March 7, 2011;

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