preliminary assessment of cbm93004 - rog 10%

Preliminary Assessment of CBM93004 Petroleum Exploration Australia (PXA) 20%, Red Sky Energy (ROG) 10%, Central Petroleum Limited (CTP) 70%
Overall, the results of the drilling of CBM93-004, which reached Total Depth (TD) on Thursday Dec 31st 2009 at 1800hrs, were encouraging for the initial assessment of Coal Seam Gas (CSG) potential in the Pedirka Basin. Wallis Drilling Rig Number D39 is now being mobilised to CBM93-003, located at the following coordinates Latitude 25.00 degrees 58.877 minutes South, Longitude 136.18 degrees 26.427 minutes East (GDA94 Zone 53). Anticipated spud date is Jan 7th 2010.
Significant thicknesses of coal were encountered and initial gas desorption results varied from fair to excellent.
Some highlights of CBM93-004 are summarised below but the results given are preliminary and subject to further analysis and interpretation on an ongoing basis.
1) Total Depth (TD) for CBM-93004 was 978m; Top "Tirrawarra Sandstone"; 895.5m 2) Total coal in seams 1m or greater in thickness as measured from core was approximately 144m. CBM-93001 and Blamore -1 recorded 138 m and 132 m respectively with the same lower 1m coal thickness cutoff. This is significant as CBM-93004 was updip and shallower than both of the previous wells and it demonstrates lateral updip continuity of coal thicknesses without any thinning. 3) Coal was present between 545m and 944m, an overall percentage of 36% in seams greater than 1m in thickness. 4) Coal is far more common in the upper part of the Purni, above 792.5m, where it comprises 47% of the sequence. Seams between 5m and 18m in thickness were common. 5) Gas volumes produced in initial onsite tests were fair to excellent, although most samples were in the lower part of the range. Highlights were initially liberated volumes of 2710ml at 566-567m, 1605ml at 702.5 - 703.5, and 923ml at 845.5 - 846.5m.
6) Petrophysics: There was no evidence from core or cuttings of live or residual oil in the sequence nor of any gas reservoirs in sandstone.
7) Bottom Hole Temperature (BHT) was around 80 Deg C, gradient around 55 deg C/km which is encouraging for future geothermal studies.
8) Further laboratory studies involving adsorption isotherm testing is underway on samples collected.
9) Four Injection Falloff Tests (IFT-an alternative to conventional drill stem testing with comparative outcomes) were run see summary below.
These results will be further assessed in more detail.

10) Overall the well intersected a thicker than anticipated coal section (144m), correlating generally with seismic and supporting the notion of coal with a widespread lateral extent.