P$D Have you looked at this one?Coal seam gas search spreads to...

P$D

Have you looked at this one?


Coal seam gas search spreads to SA


The first ever coal seam gas (CSG) investigation into South Australia's vast coal deposits is one of the focuses of a new resources company listing last week on the ASX.

New Adelaide-based resources company - SAPEX Ltd - joined the ASX lists on Friday with the ASX code of "SXP", after successfully raising $10 million with its prospectus offer.

It has 90.5 million shares on issue and 76 million options, exercisable at 25 cents before 31 January 2012.

SAPEX's focus is on the under-explored Arckaringa Basin in SA's Far North, where it holds a 100% interest in the entire Basin, with 65,000sqkm under 7 granted PELs. Native Title Agreements were reached ahead of the grant of the PELs.

SAPEX Managing Director is Andrew Andrejewskis - a geologist whose background includes heading up key Government resource sector departments in SA and the Northern Territory. He is joined on the SAPEX Board by Adelaide lawyer, Roger Wilson (Chairman), Dr David King, Paul Young and Patrick Elliott.

"While the Arckaringa Basin is considered to be "the forgotten basin" in terms of petroleum exploration, there has been considerable work and drilling undertaken in terms of the coal - but for purposes of mining only," said Mr Andrejewskis.

"No assessment has ever been made of the gas content in the coal and no major investigation has ever been undertaken on SA's coal deposits," he said.

"These coals are early Permian age, sub-bituminous and are similar to the mid - Jurassic age Walloon Coal Measures in SE Queensland which are the source of much of the CSG production in that State.

"SAPEX will undertake a thorough appraisal of the potential of the CSG with the view of supplying clean energy to the significant energy markets emerging in this region of South Australia, viz. to major mineral projects," Mr Andrejewskis said.

The company also has two coal ELs covering the Wintinna East and Weedina deposits, also in SA, which have large coal resources identified and drilled.

Examination of the feasibility to enhance the value of these deposits will be undertaken, including options such as coal gasification and coal to liquids. SAPEX will also investigate the CSG potential of PEL 120 located immediately to the north of Adelaide, where brown coal deposits have been identified.

- 28 May 2007