Strike Energy says that analysis of the coal and the gas at Strike's first well drilled in the Southern Cooper Basin confirms CSG potential.

Results of the analysis of the coal and the gas in the Forge 1 well prompt Strike to proceed with a further drilling program in the basin.

Forge 1 Results (PEL 96) Strike Energy Limited advises that laboratory testing of samples from the first well at its Southern Cooper Basin coal seam gas project (CSG) in South Australia has been completed returning encouraging results.

The Forge 1 well in permit PEL 96 successfully penetrated an aggregate thickness of 21 metres of coal from a depth of 1,281 metres in the upper part of the Permian age section. Drilling achieved a partial test of the proposed drill target. The full 224 metre sequence of Permian coal measures was not drilled due to the suspension of drilling at 1,351 metres for operational reasons.

The target sequence was penetrated at the top of the Permian section and comprised oxidised (weathered) coals immediately beneath a Jurassic age unconformity.

Despite the limitation imposed by their oxidised nature and the possibility of gas leakage at the unconformity, the coals have retained encouraging levels of gas. Gas contents are in the order of 40 standard cubic feet (scf)/ton (1.1m3/tonne); a strong result from oxidised samples, with the implication that significant gas contents can be expected in nearby and deeper unaltered coals.

Based upon the results from the oxidised coals the expected range of gas content in unaltered coals, at these depths and for equivalent coal types (in analogue areas) are likely to be to the order of 140 to 250 scf/ton (4 to 7m3/tonne) and are within the range considered to be commercial.

Geochemical analysis of the coal and gas has demonstrated that the gas is predominantly biogenic with some thermogenic component confirming two potential generation processes for the gas in the area.

While thermogenic generation can be assumed from coals at particular depths, the evidence of biogenic gas is very encouraging for these depths.

The interest holders in PEL 96 are: Strike Energy (Operator) 66 2/3% Australian Gasfields* 33 1/3% * A wholly owned subsidiary of Energy World Corporation

Strike's Managing Director Simon Ashton said the results highlighted the strong potential of the Company's coal seam gas acreage.

'The confirmation of the dual origins of gas in the coals, the gas contents and depth provide us with confidence that we will achieve our target gas contents in the coals within PEL 96'.

Tags: Strike Energy Limited