Ann: Kumbarilla Drilling Update, page-6

If you look at the map in page 2 of the ASX announcement, you can see that there are a number of coal bed methane fields in the area around Kumbarilla (ATP 2043). They were maybe hoping that these good coals extended into ATP 2043.

The coals in which the CBM is found are usually shallower than conventional gas which means it is cheaper to drill and the facilities required can be cheaper because the gas is at a lower pressure and is usually pure methane.

Looking at the picture in the ASX announcement, it seems to suggest the coal bed methane target was at ~1000 metres of depth while the conventional target is at ~2750 metres.

There is not a lot of conventional gas production in this part of Queensland, compared with coal bed methane. Many companies spent a long time drilling conventional wells in Queensland before CBM took off. It is possible Galilee have identified something that was missed by other companies in the past or it is a new high risk geological concept that they are testing.