spudding of folschviller st1 well lorraine france

Spudding of Folschviller ST1 Well Lorraine France


Extract:
7 August 2006
SPUDDING OF FOLSCHVILLER ST1 WELL, LORRAINE, FRANCE
HIGHLIGHTS
�� Spudding of Folschviller St1 well at the Lorraine Project in eastern France.
�� Target is Westphalian D and C sequences from 700m depth.
�� Initial core well of a two well program.

PROGRAM
European Gas Limited (“European Gas”) is pleased to announce the spudding of Folschviller St1 at the company’s 75% owned Lorraine Project in eastern France.
The Folschviller St1 well is to be drilled at a site 850 metres east of the town of Folschviller (see Figure 1).
The planned Total Depth (“TD”) is 1300 metres and three major packets of coal are targeted to be intersected between 870 and 1300 metres from surface. The Westphalian D coal bearing sequence is
expected to be encountered at 700 metres where HQ core will be cut through to TD.

The principal target is Coal Bed Methane (“CBM”) within the Westphalian D and C sequences.
Upon completion of the Folschviller St1 well the rig will then be used to drill the second well at Diebling in the Alsting block. The two well drilling program will take ten to twelve weeks to complete.
For each well the core will be analysed for:
• Gas content for the coal seams;
• Inter seam sediments gas contents;
• Porosity and permeability;
• Fracture and cleating; and
• Fluid sensitivity in respect of the coals and the intercalated sediments.

Drilling is being carried out by Cofor of Maisse, France using a trailer mounted Wirth B3/B5 drilling rig under a turnkey contract. Wireline logging will be carried out by Deutsche Montan Technologie of Essen, Germany while mud logging services will be provided by Geo-RS of Parigny, France.

The program is in preparation for the development of the large Gas in Place Resource which to date totals 28.1 billion cubic metres (“Bcm”) (991.2 billion cubic feet (“Bcf”)) within approximately 7% of the
Company’s permit and application areas".