In a Paterson's report back in March I found a comment that in the OIP/ESG leases the Moree and Kurrabooma wells (in PELs 427 and 428) both found Coreena Coals around 5m thick and gassy (these were only drilled to 500m to test these younger coals and deeper thicker coals are anticipated). What I hadn't realised is that the Coreena Coals are Walloon Coal equivalents .. and the latter are what are prevalent and prolific producers in Queensland in the Surat Basin. These two wells look to be some 40km apart so it looks like the Coreena Coals underly a good part of these leases. The Kurrabooma well was in my view a wildcat in an area that has had no csg drilling and no seismic .. to define the western edge of csg prospective coals .. and it found 5m of gassy Walloon equivalent coals!
And the next 2 wells being drilled in PEL 6 are on well defined Moolaymear and Maules Creek Coals (the later hosting the Bohena Seam in PEL 238). OIP has indicated upside is 3.5 TCF mostly in PEL 6. So my point is the upside potential of the OIP leases is substantial!
H
OIP Price at posting:
14.5¢ Sentiment: LT Buy Disclosure: Held
