Karoon considers options

THE newly listed coal bed methane (CBM) explorer Karoon Gas Australia is well underway with preparations for the first two wells in its 100% owned PEP 162 and EL 4537 permits located 20km from Victoria's Latrobe valley.

Hayden Lilienthal

With the first well planned for August, Karoon is targeting up to 15 trillion cubic feet (tcf) of gas in place in the main black coal sequences in the Narracan Trough after seismic interpretation indicated well developed coal seams are likely to be present.

The aim of this drilling program is to prove the presence, volume and quality of the

coal and to start to book proved and probable gas reserves in order to enter into gas sales contracts.

An audit of EL4537 has also identified a potentially commercial brown coal resource using ESSO field work data from the early 1980's that defined the resource with seismic and the drilling of 77 bores.

An independent evaluation by GHD has now determined a coal in-situ resource estimate around 340 million tones of measured, indicated and inferred resources.

Karoon is currently evaluating potential development and commercialisation options for this brown coal resource including marketing a conventional gas supply (CBM only); high efficiency electricity generation (brown coal plus CBM gas); and the export of dry low sulphur coal (brown coal plus CBM gas).

EnergyReview.net

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