Exoma Energy Starts Drilling Program in Galilee Basin (Australia)

Exoma Energy Limited announced the Atlas No.1 rig has been mobilised to the Galilee Basin in Central Queensland to commence a 12 well exploration program. The rig will be employed to drill a series of core wells testing coal seam gas (CSG) and shale gas prospects in ATP 991P, ATP 996P, ATP 999P and ATP 1008P.

The first well of the campaign, Saltern-1, is expected to spud on Thursday 26 May. The primary target of this well will be CSG in the Permian coal measures.

In addition to the wells to be drilled with the Atlas rig, the Company expects to drill shale gas wells in ATP 1005P using a second rig.

Saltern-1 is the first well to be drilled under the joint venture with CNOOC Galilee Gas Company Pty Ltd. Exoma is joint venture operator and has a 50% interest in its five Galilee Basin permits covering 26,840 km². CNOOC Galilee Gas Company Pty Ltd will contribute the first $50 million of exploration expenditure to earn a 50% interest in each permit.

[mappress]

Source: Exoma, May 23, 2011;