Very strong blow from initial opening period DST#2 interval 973m...

Very strong blow from initial opening period DST#2 interval 973m to 1007m

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Drilling : At 0600 this morning, DST#2 had commenced with a very strong blow from the initial opening period. The test was designed to measure permeability of a significant coal intersection which had been cored from c.978m to c.1008m, Maximum gas recorded during the coring of this interval reached 132 units, (c.22 times background of 8 units with C1-C4, one unit equals 100 ppm) representing a significant increase of gas liberated while coring from the top of the coal bearing Purni Formation. A preliminary interpretive table of significant coal and gas results while drilling follows. A further 100m or so of Permian formation remains to be drilled and or cored. The amount of coal encountered has contributed (along with contractor deficiencies) to less than optimum progress on this well but the results thus far are quite positive.
DST #1 had tested coals over the interval 798.7 to 810.5 with very good preliminary indications of permeability (ability to flow). Drill stem testing of coal does not normally produce gas but measures the ability to flow formation water. Coupled with gas desorbtion studies from cored sections, the DST data can be used to calculate potential of the relevant coal to flow gas once it is dewatered. Further detail will be released as and when it is available.
Relative proportions of vitrinite and liptinite are increasing with depth and inertinite is decreasing. This indicates an increasing “richness” of coal and an inherent ability to produce gas
Although these results are preliminary until the well is logged and tested, the implications are quite positive for Central’s CBM programme going forward.