Ambassador reports big CSG numbers

AMBASSADOR Oil and & Gas will be hoping news that PEL 570 may hold up to 13 trillion cubic feet of gas in place from coal seams, twice the previous estimate, will help arrest a market slide it has suffered through since July.

James McGrath

In a release to the market this morning, Ambassador said it had commissioned AWT International to take a look at data compiled from cores and associated desorption to come up with an estimate for the coals, located in the Patchawarra Trough.

It said it was targeting recovery of between 25% and 50% from the coal seams which lie roughly 3000m deep and combine for a total thickness of roughly 100m.

Further, the analysis from AWT shows that deeper coals in the Cooper Basin are likely to have generated most of the oil and gas already being produced in the basin.

A gas composition analysis showed gas from the coal seams and that of gas in conventional Cooper fields was nearly identical in nature.

Ambassador will be hoping the news will be enough to sate shareholders who have seen the company’s share price plummet from roughly 18c in late June to a low of about 8c.

The plunge was prompted by a pair of abandonments at PEL 516 by operator Senex Energy.

The news has paid off so far today for Ambassador, with its shares up a whopping 21.25% in early trade to 9.7c.

This article first appeared in ILN's sister publication