Today's target statement was made following a broader tenement study using data already held by Waratah and historical data collected by other companies.

The Galilee Basin was explored for petroleum, gas and oil shale from 1960 to 1980, which Waratah and consultant SRK have used to develop a broad basin geological model.

Waratah has previously identified JORC and CIM compliant inferred resources of 3.38Bt at its South Alpha (east) tenements and 0.975Bt in its North Alpha (east) tenements.

Exploration and mineral development licences owned by a third party are located along strike and split the South Alpha and North Alpha projects.

Depth of cover ranges from 25m to 800m. Waratah said coal targets from 150m to 400m depth would be explored for underground mining potential.

The shallow seam dip, continuity and apparent lack of significant structural disturbance will be tested for possible large-scale, high production longwall potential, the company said.

Waratah added future exploration of the middle and western tenements and applications would focus on identifying deeper resources for insitu coal seam gasification.

A Galilee Basin coal seam gasification and coal-to-liquids production study by URS Australia, commissioned by Waratah, estimated up to 80% conversion to oil, gas and higher temperature distillates with overall yield of greater than one barrel of liquids per tonne of coal on a dry ash free basis, in the transport fuel range.

Waratah's tenements and applications cover 15,000 square kilometres with a strike extent of about 220km and downdip extent of about 80km.