In the US Planet Gas has the rights to the Esponda Project which covers 10,344 acres in the Powder River Basin, Wyoming, along with a further 1,527 acres in the Powder River Basin’s Whisky Draw and Oriva Projects.
The Powder River Basin is estimated to contain around 0.9 trillion tonnes of coal with potential CBM resources of over 25 trillion cubic feet. CBM production in the region is already around 900 million cubic feet per day from over 10,000 producing wells.
In the Eastern Esponda project drilling programs have been completed by the company's two joint venture partners with Kennedy Oil completing twelve wells and Western Gas completing eight wells, with all being designated as future production wells. Initial gas recovery is anticipated before the end of the year.
Gas in place resources for the Eastern Esponda Block, which makes up only 11% of the company's Esponda Project, have been estimated at 21.9 billion cubic feet (bcf) gross and 7.3bcf net within the Big George Seam.
During the quarter, the company acquired the Whisky Draw project, comprising 640 acres with not only CBM rights but oil and gas rights as well. However, the primary target for CBM is the Big George Seam at depths of approximately 600m.
The company also acquired the Oriva Project comprising 887 acres in Wyoming which is open to CBM, oil and gas rights and contains nearly all productive coals in the Powder River Basin. Planet Gas is currently assessing its options for the completion of eleven multiple well locations.
Back in Australia Planet Gas has acquired the rights to prospective CBM projects in the Gippsland and Otway Basins of Victoria, the Eromanga and Willochra Basins of South Australia and the Gunnedah Basin of New South Wales, although all are in relatively early stage exploration projects.
However, in the Gippsland Basin the company plans the drilling of up to eighteen test wells to verify the economic viability of the drilling of production wells. The results from this initial program, which is planned over a six to eight month period, will determine the subsequent exploration and development program.
