Australian energy company Eneabba Gas Limited can now confirm, what it believes to be, one of the most significant stand-alone energy projects in Western Australia’s (WA) Mid West region (’Mid West’).

Independent analysis by Xenith Consulting Pty Ltd (’Xenith’), now confirms that the first of the Company’s ten Sargon Tenements contains 3,037 PJ of insitu energy. Xenith is regarded as a coal resource specialist with experience in classifying coal resources both in Australia and worldwide. The final JORC resource result in this section of the Sargon Tenements was determined by Xenith, having increased by 20% on the Maiden JORC result as reported on 24 September 2009;

On the basis of its analysis and understanding of the nature of coal, Xenith has determined the total estimated energy (in PJ) in this section of the Sargon Tenements. It has found that, as the Sargon coal is running at an average of 16MJ/kg, the in-situ resource (averaging some 20% of ash) would yield 194 million tonnes of coal, translating to 3,037 PJ of energy. The Company is aware that in-situ coal in various operations within Australia and overseas, suitable for UCG, has yielded a potential range of recoverable energy of some 50.0% - 58.0% plus of the insitu energy.

From its evaluation, Xenith concluded (ASX 24 September 2009): ‘The large size of the overall Sargon group tenements when combined with the encouraging exploration results from tenement E 70/2758 suggest that the Mid West area could host a number of coal mineralisation targets suitable for Underground Coal Gasification (’UCG’) technology.’

The Company believes the confirmation of this substantial coal resource and the overwhelming size of the energy potential of this project, is likely to represent a key milestone in the Company’s elevation to a major Australian energy producer and should also underpin the timely development of a range of Mid West resources projects.

‘We recognise that, even at such an early stage, the energy potential of our project is enormous. To put this into context, the amount of energy that has been delineated by the independent consultants would power our proposed Centauri-1 Power Station of 365 MW for over 100 years at full capacity. In addition to this, the Xenith Report attached also advises that the western area adjacent to the 2009 exploration target zone has a high likelihood of further potential resource and it is recommended that further exploration be conducted to target this area ‘ Eneabba Gas Managing Director Mr Mark Babidge said.

‘To place some perspective on these JORC results and standardised energy estimate the publicly announced details of the Gorgon Project under the Barrow Island Act (WA) 2003 State Agreement’ reserves 2,000 PJ total, for the Domgas market over the life of the Gorgon Project’ Mr Babidge added.

Tags: Eneabba Gas Limited