The company holds an extensive CSM portfolio in Queensland, where it has 100% ownership of 23,920 square kilometres of highly prospective permits in the Bowen and Surat Basins.
It also holds 1200sq.km in joint ventures in the Maryborough Basin, central Queensland, where it has the right to earn up to 90% working interest.
Energy Investments said drilling would today begin on the Burrum-1 CSM well in permit ATP613P there.
The company will fund 100% of costs to earn 90% working interest in any production in the permit as well as permit 733P from Magellan Petroleum, the current tenement holder and operator of the drilling program.
Energy Investments said during calendar 2007, it also plans to begin CSM exploration and appraisal drilling in its 100%-owned permits ATP817P and ATP818P in the Bowen and Surat Basins, respectively.
The company said it has also completed a heads of agreement with CSM Energy, which will fully fund exploration drilling and up to two four-well pilot CSM project developments in permit ATP814P, in the Bowen Basin.
CSM Energy will earn a 50% working interest in seven graticular blocks, totalling 550sq.km of ATP814P for an estimated cost of $6 million. Energy Investment’s 100% ownership will be reduced to 50% following the transaction.
