oil and gas bulletin issue 14...helium!

Not sure how many here read the 'Mining Chronicle', which is a Western Australia newspaper publication, but in its Oil and Gas Bulletin lift out, Central Petroleum had a 2 page article. Pretty much a rehash of info in which a few of us here will already know, but here is a few snippets for those unable to get the issue.

"Adding yet another dimension to Centrals spot in the sun is its helium play. An abundant element that has become rather scarce in usable form, helium is prized as a safer cooling and propulsive agent in nuclear reactors.

'Most of the Amadeus Basin has the Heavitree Fromation play type, which is blanketed by a think layer of Gillen Members salt. This is the only type of geological fromation in the world where helium can be successfully trapped,' Mr Heugh explained. The geology here is similar to other helium producing regions in the world especially those in the south western regions of the US, from where until now, abouth 80 percent of the worlds helium supplies have come.

'This particular play has only been penetrated once before by a well called Magee 1 in 1992 and it turned up gas condensate and helium to surface with a concentration of 6.3 percent. So this places the gas flow to surface at Magee 1 probably in the top one per cent of helium concentrations naturally occuring in the world.'"

Finally some additions on the Joint Venture with BG...

"After initially being ignored by several stockbrokers, CTP won over Patersons Securities to manage its rights issue earlier in the year.
'Probably the single major factor that got us across the line with both Patersons and institutional investors was Petroleum Exploration Australia (PXA) being taken over by Queensland Gas Company, now a part of the BG Group. Significantly, the only asset that was purchased was PXA's farm-in agreement with us,' Mr Heugh said.

At the time of writing, the BG Group and QGC, which own PXA, were readying for a decision meeting.
'If it proceeds with the joint venture, BG will, for most of the exploration program, fund at a 40 percent level to retain a 20 percent interest in the permit. That will considerably ease our burden,' Mr Heugh said.
'Secondly, the farm-in agreement will also have Central benefiting from the technical expertise of both BG Group and QGC.'

While Mr Heugh was quietly confident that BG Group would green flag Central's exploration plans, he said Central would soley risk the CSG exploration, in the event the farm-in program was knocked back."

Looking forward to the upcoming drilling campaign and as said in many previous posts, I will be eagerly watching their Helium play which I am holding high hopes on, especially if we find concentrations in commercial volumes in the percentage ranged discussed. Anyway I hope you enjoyed the read.

Later.