The 20 cent issue opened at 31c and is currently trading at 27.5c.

Under two separate arrangements with Kennedy Oil and Lance Oil & Gas Company, a subsidiary of Western Gas Resources (Western Gas), drilling has commenced in the eastern blocks of the Esponda Project in the Powder River Basin and continued through the northern winter.

Kennedy Oil has now drilled all twelve of its wells, whilst Western Gas Resources has just spudded the eighth and last of its wells with both companies reporting thick and consistent Big George Coal intervals in all wells. All have been shut in as future producers.

As the joint venture wells move towards production, Planet Gas will turn its attention to its 100% owned ground. Permits are being sought to drill a number of stratigraphic wells, which are necessary due to the sparse drill density in the axial portion of the Powder River Basin.

These wells will be drilled to depths between 900 and 1200 metres and a complete geophysical logging suite will be performed to determine the areal extent and local stratigraphy within the lease block. It is anticipated that these holes will be drilled before the end of the June quarter.

Meanwhile in its 100% owned Gippsland Basin acreage in Victoria the company is currently completing data review and compilation. The first drilling program will consist of a number of stratigraphic holes which are expected to be drilled late in the June quarter. These will be followed by core drilling and gas desorption tests.