Eastern Star Gas: Monthly Drilling Report (Australia)

Eastern Star Gas Limited announced its monthly drilling update on its coal seam gas drilling operations in PEL 238 around the township of Narrabri, in Northern New South Wales Australia.

Objective:

The Culgoora 2 corehole is located approximately 22 km west from the township of Narrabri in northern region of PEL 238. The well is designed to appraise the coal seam gas characteristics of the Late Permian Black Jack and Early Permian Maules Creek formation coals approximately 8.2 km to the northwest of the Tintsfield pilot.

Well Status/Results:

At the time of this report Culgoora 2 was at a depth of 750.0m in the Black Jack Formation with 4 ½” casing set at 478m. The well to date has intersected 13.5m of coal in the Black Jack Formation with 7.4m of coal in the Hoskissons seam. Due to heavy rain in early December drilling operations were suspended. The well was made secure and the crews were demobilised. The Drilling and DST crews were remobilised on the 15 December and the DST was conducted over the Hoskissons coal seam. The well was suspended with a temporary cement plug set in the 4 ½” casing. The Boart Longyear 1200-1 rig and drilling crews were demobilised for the Christmas/New Year break. The cement plug will be drilled out when drilling operations recommence in early January 2011.

Current Operations:

The Boart Longyear 1200-1 rig is expected to remobilise to the Culgoora 2 wellsite during the first week of January.

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Source: Eastern Star Gas, January 5, 2010;