Shares in Sapex Limited (SXP) were 20% higher at 1225 AEST after...

Shares in Sapex Limited (SXP) were 20% higher at 1225 AEST after the company reported a significant expansion in the initial inferred resource estimate for coal deposits and potential coal seam gas (“CSG”) content within the company’s vast Arckaringa Basin exploration licence areas in South Australia. The group reported that the new inferred coal resource estimate follows an independent review by consultant group, Geos Mining, of the pre-JORC drilling data, within exploration licence (“EL”) 3326. The results announced from the Geos Mining study are that EL 3326 contains one billion tonnes of inferred resources of sub-bituminous coal in 6 seams located in the south-central area of the licence. Sapex advised that outside of this inferred resource there is an exploration target of 2 billion tonnes of sub-bituminous coal within the EL area. The company said that the outcome of the initial study on EL 3326 indicates a potential for some 300 billion cubic feet to 900 billion cubic feet of CSG. Sapex advised that when combined with the results of the study on EL 3325, which were reported on 25 June this year, the two EL’s combined have an in-place potential for CSG of between 507 billion cubic feet to more than 2 trillion cubic feet.