random thoughts of jp, page-9

? It is MEL?s view that several areas within the tenement, that are currently undrilled, contain similar coal seam gas resources to the areas where we have currently booked 2P reserves.


? This reserve upgrade is solely focussed on coal seam gas.

? MEL expect to provide further information to the market on potential gas reserves at the Kingfisher gas field in the future as well as further updates on results from production testing.

? Metgasco is currently engaged in a sell down process for PEL 16 with a view to bringing in a like minded partner to assist with the exploration and development of this tenement. A lot of conjecture here, and we are probably totally wrong, but our bet is on Arrow.

? Kingfisher flows 2.97 million scfd from only 5.3 metre interval of total net pay of 30.3 metres, and total of 138.3 metres of potential gas pay.


? Kingfisher drilling depth was constrained by limitations of drill rig used.

? Therefore expect next well drilled to use a better drill that can drill to a total depth that will better resolve and show the true net pay depth deeper in the Ripley Road sandstone.

? As stated previously, we are of the opinion that there is potential here for possibly 10 million scfd from Kingfisher. Perhaps overly ambitious, possibly not.


? 7 additional conventional leads and prospects in PEL 16. If Kingfisher is anything to go by, there is a lot awaiting.

? During the last quarter Metgasco has secured 100% ownership of the exploration permits PEL 13 and PEL 426.

? PEL 13 and PEL 426 cover approximately 4,900 km2 and are prospective for BOTH coal seam gas AND conventional hydrocarbons.

? Metgasco has recently completed detailed mapping of the Walloon Coal Measures in these blocks (PEL 13 and PEL426 ) and has identified a number of potential coal seam gas sweetspots.

? Seismic reprocessing and interpretation has continued during the quarter with the focus of activities being on mapping prospects and leads in all permits and planning for additional core holes in PEL 13 for reserves development purposes. Once the inventory of prospects and leads is finalised, Metgasco will prioritise these opportunities with the view to acquiring additional seismic data over high grade leads.

? Metgasco is currently finalising planning to conduct an accelerated exploration strategy to evaluate these areas and commence booking reserves.



? Metgasco is continuing to investigate gas commercialisation opportunities and is currently in discussions with several prospective customers. This is apart from sale of 50% of PEL 16

JP