Central Petroleum says that a new report has identified an area of the Simpson Desert straddling the South Australian-Northern Territory border as sufficiently promising to be a serious contender in Australia’s rapidly emerging underground coal gasification, coal bed methane and gas-to-liquids industries.

The report, the full text of which will be released shortly, found potential for well in excess of one trillion tonnes of coal in the Purni Formation of the Pedirka Basin with estimates suggesting the coal seam potential is very well identified between 200 and 1,000 metres depth.

The findings will now be used by Perth-based Central Petroleum Limited (CTP) to explore further the potential for various technology applications such as UCG, GTL and CTL.

CTP commissioned the independent report, authored by geologists Phillip A. Jones B.AppSc(Geol), MAusIMM, MAIG and Allen J. Maynard BAppSc(Geol), MAIG, MAusIMM of independent geological consulting firm, Al Maynard & Associates, in the wake of the discovery by the Company late last year of significant coal thicknesses of well over 100 metres of cumulative coal seams in the Purni Formation.

The report’s authors were asked to determine the total tonnage of Permian coal in the Basin that could possibly be amenable to underground coal gasification (UCG) and/or coal bed methane (CBM) gas extraction as a possible feedstock for gas to liquids (GTL) processes.

Central Petroleum has other joint ventures over the acreage but is pursuing in its own right, outside the current Joint Venture, the potential for UCG and GTL options in the Pedirka Basin.

“The findings are a solid outcome and whilst there has not yet been sufficient drilling to arrive at a JORC resource estimate, the report has defined a coal “Exploration Target” potential of between 0.6-1.3 trillion tonnes above 1,000m with a total tonnage inclusive of deeper coal sections of between 1.5 to 2.1 trillion tonnes in CTP’s combination of Mining and Petroleum Act permits and applications that covers most of the same ground,” Central Petroleum’s Managing Director, Mr John Heugh, said.

“This is a significant conclusion, as the estimate is based on a realistic contribution of several factors, including a fresh interpretation of the geometry of the Basin, three dimensional data from seismic surveys, 2008 drillholes including cumulative coal intercepts of much greater than 100 metres, and supporting geophysical downhole logging data.”

Tags: Central Petroleum Limited