santos 40tcf resource at gunnedah, page-12

acorn et al

Did anyone see this article on Dow Jones? The CSG sector is just warming up IMHO. Australia can become a green(er) energy superpower on the back of csg. Potential for 250 Tcf of CSG and mostly in the eastern states!!!

Australia set to become superpower in low-emission energy
17:16, Monday, 2 June 2008
Sydney - Monday - June 2: (RWE Australian Business News) -

The interest of three of the world's top 10 liquefied natural gas producers in Australia's coal seam gas (CSG) reserves highlighted this country's potential to both lead the world in reducing domestic greenhouse emissions and be a global superpower in the export of low-emissions
energy, Australian Petroleum Production & Exploration Association Ltd (APPEA) chief executive Ms Belinda Robinson said today.

"The world is sitting up and taking notice of Australia's vast reserves of clean-burning natural gas, with three of the top 10 liquefied natural gas producers taking an active interest in coal seam gas projects," she said.

Ms Robinson was commenting after the announcement of a strategic alliance between Shell and Arrow Energy Ltd (ASX:AOE) today to develop Arrow's CSG reserves, the announcement of a joint venture by Santos Ltd (ASX:STO) and Petronas on Thursday and Origin Energy Ltd's (ASX:ORG)
rejection of a bid for the company by BG.

"APPEA welcomes today's announcement of a strategic alliance between APPEA members Shell and Arrow as a further sign of confidence in coal seam gas as a fuel of the future.

"On top of our enormous conventional natural gas reserves in the Bass Strait, the Cooper Basin and in sedimentary basins of northwestern Australia, CSG more than anything gives Australia the chance to both secure a competitively priced, low-emissions fuel for the future and to
feed the hungry tiger economies of Asia a more climate-friendly diet."

*****

The recent APPEA 2008 conference in Perth heard that CSG
production increased 44pc in 2007 to 112bn cubic feet (equal to about 20m barrels of oil energy equivalent).

In the first quarter of this year, CSG reserves reached over 7.3 trillion cubic feet (tcf).

The CSIRO has estimated the potential resource at as much as 250tcf. Conventional gas reserves are currently 144tcf.

"When you consider that eastern Australia's total gas use (both conventional and CSG) is currently equal to about 0.65 tcf a year and LNG exports stood at 0.7 tcf last year, the potential of CSG along with conventional gas reserves to serve Australia's domestic gas needs and
the export market is apparent," Ms Robinson said.

"CSG has come of age to the extent that it now supplies about 18pc of the eastern Australian gas market, and the important thing is that there is enough of it for us to have our gas and export some too."
ENDS