Melbourne-based Purus yesterday said the Gordon project permeability results were low, as was gas content (an average of only 100-180 standard cubic feet per tonne).
Hawkesdale Project permeability results were also low, while Hawkesdale gas content results were expected by late July.
“In light of these results, the directors now consider it prudent to continue assessing new possibilities within the Purus tenements in the Otway,” said Purus.
“The directors will also be assessing other projects and opportunities that may be available, to ensure the best opportunities for the future of the company and its stakeholders are taken in order to improve shareholder value.”
A study of seismic cross sections in the eastern portion of the Purus tenements had shown the presence of Early Tertiary-age coals at a depth of about 600m. These coals would make a target for CSM and were being researched to find out if they satisfied exploration parameters and were suitable for drilling.
The company said its directors were disappointed by the low permeability in the Killara Coals as it considered the Otway to be structurally conducive to higher permeability, being an extensional basin with half graben fault blocks formed mainly in a tensional regime.
“The consensus of technical opinion was that a tensional regime should have led to better permeability in the coals.”
Further analysis of the Gordon coal was being done (isotherm and petrology), though results were not yet available. An isotope test was being done on two of the remaining gas samples to determine if the nitrogen content was associated with the coal or there was contamination from an extraneous source.
Because of the low permeability results from Hawkesdale, the drilling of the final hole (PHE No 4) had been deferred.
Purus said its advisor Netherland, Sewell & Associates would be provided with all drilling and analysis data and had been commissioned to conduct a volumetric study and an economic study on the potential economic viability of both Gordon and Hawkesdale.
“It is anticipated this report will be available by the end of July, depending on receipt of all the technical data.”
