implications of esgs laterals in thin seams

Yesterday ESG announced excellent results from its Bibbelwindi West (BW)tri-lateral pilot that is assessing thinner coals than previously successfully drilled with a lateral pilot in adjoinging PEL 238. These are Upper Maules Creek formation Namoi coals that are 3-5m thick. Very good water flows have been achieved and these are considered a precursor to good gas flows. The coals so far encountered in OIP's PELs .. have been 4-5m and gassy. IMHO the ongoing results from BW have important implications for the commerciality of the coals already drilled in OIP's PELs 427 and 428. And that is in addition to the Maules Creek coals that are expected to be encountered in upcoming drilling in PEL 6 .. these are Bohena (and other) coals that are proving very productive in ESG's project areas.

I'm sure ESG are very methodically going about testing all the different coals in their stable of leases to quantify the size of their resource .. and OIP will benefit from this in future. OIP .. one to watch.

H