Eastern Star Gas Provides 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.

Culgoora 2 Corehole

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:

The Culgoora 2 drilling operations recommenced on the 8 January after the well was suspended over the Christmas/New Year period with a temporary cement plug set in the 4 ½” casing. The well was drilled to a total depth of 1011m. From wireline logs run at total depth the well is interpreted to have intersected 13.3m of net coal in the Black Jack Formation and 1.3m in the Maules Creek Formation.

Current Operations:

The Boart Longyear 1200-1 rig was released from Culgoora 2 on 20 January 2011 and was moved to the Willala 1 wellsite.

Willala 1 Corehole

Objective:

The Willala 1 corehole is located approximately 20 km west from the township of Boggabri in south eastern 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.

Well Status/Results:

As at this report date, Willala 1 has reached a depth of 526m and has intersected the top of the Maules Creek Formation. Preliminary indications suggest the well has intersected 7.0m of coal within the Black Jack Formation and 1.0m in the Maules Creek Formation to date.

Current Operations:

Pulling out of hole to change drilling bit.

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Source: Eastern Star Gas, February 2, 2011;