Ann: 170209 Massive Coal Gas Potential SA-NT bord, page-5

re: Ann: 170209 Massive Coal Gas Potential SA... Taken from the Announcment

The report, the full text of which will be released shortly, found potential for well in excess of one trillion tonnes of coal in the Purni Formation of the Pedirka Basin with estimates suggesting the coal seam potential is very well identified between 200 and 1,000 metres depth.
The findings will now be used by Perth-based Central Petroleum Limited (ASX code: “CTP”) to explore further the potential for various technology applications such as UCG, GTL and CTL.

CTP commissioned the independent report, authored by geologists Phillip A. Jones B.AppSc(Geol), MAusIMM, MAIG and Allen J. Maynard BAppSc(Geol), MAIG, MAusIMM of independent geological consulting firm, Al Maynard & Associates, in the wake of the discovery by the Company late last year of significant coal thicknesses of well over 100 metres of cumulative coal seams in the Purni Formation.
The report’s authors were asked to determine the total tonnage of Permian coal in the Basin that could possibly be amenable to underground coal gasification (UCG) and/or coal bed methane (CBM) gas extraction as a possible feedstock for gas to liquids (GTL) processes.

Central Petroleum has other joint ventures over the acreage but is pursuing in its own right, outside the current Joint Venture, the potential for UCG and GTL options in the Pedirka Basin.

“The findings are a solid outcome and whilst there has not yet been sufficient drilling to arrive at a JORC resource estimate, the report has defined a coal “Exploration Target” potential of between 0.6-1.3 trillion tonnes above 1,000m with a total tonnage inclusive of deeper coal sections of between 1.5 to 2.1 trillion tonnes in CTP’s combination of Mining and Petroleum Act permits and applications that covers most of the same ground,” Central Petroleum’s Managing Director, Mr John Heugh, said today.

“This is a significant conclusion, as the estimate is based on a realistic contribution of several factors, including a fresh interpretation of the geometry of the Basin, three dimensional data from seismic surveys, 2008 drillholes including cumulative coal intercepts of much greater than 100 metres, and supporting geophysical downhole logging data.”

“We were already aware from previous modelling that the Basin’s coal footprint extends over more than 9,000 km2 of the Purni Formation alone in EP 93, just one of the Company’s Pedirka Basin tenements, so this is a further step along the confidence path to vindicate substantive coal focussed drilling throughout the Basin.”
The tonnage estimates are contained in a combination of petroleum and mining permits dually or singularly held by Central Petroleum over the total footprint hosting the coal seams.
The dual tenure enacted by the Company is a strategic move to ensure that clarification by State Authorities (NT & SA Governments) of how competing coal gas extraction technologies will be permitted will be covered under either “Mineral” or “Petroleum” legislation.
The tonnages reported today are held under the following:
Mining Act Permits: Total area c. 19,000 km2
Coal above vertical depth of 1,000m range 615 - 655 billion tonnes
Coal below vertical depth of 1,000m range 935 - 985 billion tonnes
Petroleum Act Permits: Covering coal in the Pedirka c. 28,000 km2:
Coal above vertical depth of 1,000m range 1,205 -1,265 billion tonnes
Coal below vertical depth of 1,000m range 900 - 945 billion tonnes