The State lease lies ten kilometres directly south of Planet Gas’ East Esponda tenements, with the company securing a primary term on the lease of five years, subject to a 16.67% State royalty. The primary target for CBM is the Big George Seam at depths of approximately 600 metres.

The State lease will be known as the Whisky Draw Project and is adjacent to Kennedy Oil’s Big Cat Federal CBM field, which is currently being brought into production.

Although State mandated 80 acre well spacing allows up to eight well locations to be completed, if multiple seams are encountered and downhole conditions warrant then more than one well per location may be completed.

Planet Gas has also acquired the Oriva Project in the Powder River Basin, which contains nearly all productive coals in the Powder River Basin: Felix, Smith, and Anderson Seams (depths 60 - 300 metres), Canyon/Cook and Wall Seams (depths 300 – 500 metres). In addition to these primary coal bed targets, there are two deeper seams Moyer & Danner at depths of approximately 750 metres.