an introduction to european gas ltd, page-58

Half yearly report:

http://sa.iguana2.com/cache/890205bcda11be1a330e68954a9a6479/ASX-EPG-355162.pdf

Extract:
Re the Folschviller St1 well:
"The results are considered by the company to be encouraging and suggest that sustainable gas flows could be achievable with the application of multi lateral drilling techniques.
The company’s technical personnel reported that many coal cores on examination at the well site expelled gas which was visible as a bubbling effect which suggests permeability in a qualitative sense. It was also recorded that the coal packet Marie-Maurice-Noirel (1251 metres depth) was expelling gas from the core some two hours after reaching surface.

The coals are generally black with a brilliant lustre, display regular sub vertical cleating and the ubiquitous presence of minor pyrite and ankerite. The cleating pattern, which has been affected by regional stress fields, has been documented by DMT. Detailed analysis of the cleating and fracture pattern is currently in progress and the results will enable optimum placement of the lateral wells planned for the production test phase in 2007.

The weighted average desorbable gas content for the six coal packets is 9.42 cubic metres per tonne (332.5 cubic feet per tonne) and on this basis the energy density for the Folschviller area is 823 million cubic metres per square kilometre (29.1 billion cubic feet per square kilometre).

Gas indications from the mud log readings show that methane is present within the inter seam sediments over virtually the entire Westphalien section penetrated by this well.

The company is investigating appropriate methodology to enable quantification of this resource as it is of a view that the Gas in Place in the sediments when measured will enable a considerable up grading of the current resource".