red sky exposure to nt ucg & csg

New coal find for Central

Neil Dowling
From: PerthNow
March 03, 2010 7:29AM

AN extensive coal deposit in its Northern Territory tenements has today been announced by WA energy group Central Petroleum.

The latest discovery, initially measured at 130m with seams at more than 1m thick, may have the potential to be commercialised as fuel either as coal-seam-gas (CSG) and gas-to-liquids or underground-coal-gasification (UCG) with the ability to value-add as liquids.

In its report to the ASX and Northern Territory Government today, Central Petroleum managing director John Heugh said LNG destinations via pipeline to Darwin may also be possible.

The coal discovery was made in EP107, 38km south of a recent discovery of 144m of coal.

``The latest well has intersected 130m of coal with seams of more than 1m thick and confirms regional geological interpretations of an extensive coal deposit in this area,'' Mr Heugh said.

``Drill hole data was previously very sparse in this part of the Andado Shelf and hence this result adds confidence to previous coal exploration target estimates undertaken by an independent expert.''

Mr Heugh said further drilling was planned.

Central holds a 70 per cent interest and is operator in EP107 through its wholly-owned subsidiary Merlin Energy and is in joint venture with Petroleum Exploration Australia (20 per cent) and Red Sky Energy (10 pr cent).

http://www.perthnow.com.au/business/new-coal-find-for-central/story-e6frg2s3-1225836423201