The company will hold a 75% interest in the projects with UK group Heritage Petroleum joining as venture partner.

The projects, three in France and one in Italy, cover around 2,418 square kilometres over major historical coal producing areas estimated to host several trillion cubic feet (Tcf) of coal derived methane.

The Bleue Lorraine application area covers 821 square kilometres and encompasses a significant part of the Lorraine Basin which has historical coal production in excess of 850 million tonnes. The basin is prospective for CMM and CBM production and has a number of extensive systems of mine workings within the basin, the last of the operating mines being scheduled for closure in 2005.

The Gaz de Gardanne application area covers 739 square kilometres and encompasses the L'Arc Basin. Historical coal production from the Basin is approximately 80 million tonnes of sub bituminous coal. Mine emission data from this region shows that 25 cubic metres of methane is released from mine workings for each tonne of coal mined. The mines of the L'Arc Basin do not appear to present opportunities for CMM production.

The Gaz de Saint Etienne application of 242.9 square kilometres covers the bulk of the Loire Basin which contains coal measures of up to 40 seams of Carboniferous age ranging in thickness from one to 15 metres. Historical production is approximately 600 million tonnes of bituminous coal with a long history of explosive methane being encountered during mining. The area is mainly prospective for CMM production and to a lesser extent CBM production due to the extensive nature of previous coal mining activity.

The Sulcis application area covers 615.2 square kilometres and contains estimated sub bituminous coal resources of over 1,000 million tonnes of Eocene age. Historical coal production is approximately 80 million tonnes. The target development for the area is CBM. Gas production rates in this "sweet spot" are exceptional in CBM terms and parts of the Sulcis application area appear to be analogous in regards to gas generation with associated preservation of permeability.

It is anticipated that the Sulcis and Bleue Lorraine titles will be granted in the coming months while Gaz de Gardanne and Gaz de Saint Etienne are likely to be granted within the next six to 12 months.