ajl announcement and mpo glouchester goes off!!!
In todays AGM announcement from AJL
The Gloucester Basin permit provides a great research laboratory for Lucas to test its new drilling techniques and methodology. The logic behind this initiative was that successful initial development would not only create a reliable and recurring future earnings stream (by the development of new drilling technologies) to be offered to the market place in general but, would create at the same time a valuable asset by proving the Gloucester Basin permit as a significant gas resource.
Thus far our logic has proved correct.
Phase I is nearing completion and it is fair to say that the resource exceeds our expectations. While the geology is certainly not straight forward, the Gloucester Basin permit lends itself to Lucas’ TRD and MRD drilling technologies. The permeability of the coals are some of the best in Australia but we will not know the full extent of the resource until further work is undertaken.
The Gloucester Basin permit is roughly the same size as the Australian Capital Territory with 32 coal seams, 7 of which provide particular interest. Its location sits well to provide gas to both the Hunter and Newcastle regions as well as the Sydney market. We are currently undertaking a great deal of engineering and detailed thought as to the next steps to take in developing the Gloucester Basin permit.
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