The company told the Australian Stock Exchange this morning that the new exploration lease, where drilling is planned for either late this year or early next, relates to the Vader Prospect in the southern part of the state.

Just two days ago, the company announced it had won 51 leases covering over 18,000 acres in the Grays Harbor Basin, to the west.

As a result of the most recent acquisition, Comet says its US subsidiary now holds a 40% interest in leases and lease options covering in excess of 156,000 acres over the contiguous Vader and Cedar Creek prospect areas.

Drilling will target a large potential shallow coal seam methane resource in the

Eocene-aged Cowlitz Formation.

Comet said these coals have been extensively explored as a coal resource, and numerous gas shows have been recorded in coal holes and water wells in the Vader area. In addition, a 700,000 cubic feet per day gas flow was recorded from a conventional sandstone reservoir lying at 700 feet (213.4m) in the northern part of the acreage position St Helens and Cascadia have a partial interest in the lease the well was drilled on.

The joint venture will also evaluate the potential for conventional gas in deeper sandstones. These potential reservoirs are the same age as those that produce gas at the Mist Field in northern Oregon, where 65-70 billion cubic feet of gas has been produced to date, located 30km southwest of the Vader/Cedar Creek area.

All of the recently acquired acreage lies within 12 miles (19km) of a major gas pipeline.