a good announcement out today this should get the share price...

a good announcement out today this should get the share price going in the next few weeks.

EXCITING EXPLORATION RESULTS FOR CH4 GAS LIMITED
CH4 Gas Limited is nearing completion of an exploration drilling program over three
new project areas in the central and south eastern portions of ATP364P. This
program has focussed on drilling of identified targets in the “South Walker”,
“Annandale” and “Coxendean” areas, and has so far provided favourable results for
further potential coal seam gas development.
In work completed, a total of:
• five wells have been drilled at South Walker; and
• three wells have been drilled at Annandale.
In each area the drilling is targeting several seams of the Rangal Coal Measures,
which overlie the Moranbah Coal Measures that host CH4’s Moranbah Gas Project.
At South Walker, 40 kilometres east of Moranbah, two thick seams have been
intersected - the Leichhardt seam and the Vermont seam.
In drill hole SW002 the Leichhardt seam was intersected at a depth of approximately
200 metres, with a seam thickness of 6.2 metres and gas content averaging 13.6
m3/t. The Vermont seam was intersected at a depth of approximately 250 metres
with a seam thickness of 7.5 metres and gas content of 11.5m3/t.
In drill hole SW003 the Leichhardt seam was intersected at a depth of approximately
186 metres, with a seam thickness of 9.3 metres. The Vermont seam was intersected
at approximately 227 metres with a seam thickness of 7 metres. Preliminary gas
content testing (field testing) show these seams to have similar gas contents to those
in SW002. Gas content of SW003 is to be confirmed in the coming weeks.
Permeability testing of these seams will be conducted during November 2004, with
initial indications of depth and coal quality suggesting good permeability levels are
likely.
Testing of drill results from Annandale is in progress with Coxendean to be drilled in
the coming weeks.
Managing Director Louis Rozman said “We are very excited by these excellent
results at South Walker - we have not seen results as good as 14m3/t at these
shallow depths before. These results confirm the basis of our strategy of developing
satellite projects that can provide additional gas for delivery to our established
facilities in Moranbah.”
CH4 continues to deliver commissioning gas to Enertrade via the Moranbah to
Townsville Pipeline at a rate of 10TJ/day.