Planet Gas announced that its wholly owned subsidiary, Greenpower Energy Pty Ltd, has had its Gippsland Basin drilling program work plan application approved and registered. The company plans to start drilling in early January.

The company’s western Gippsland blocks, EL 4500 and 4807, cover 244,200 hectares.

Greenpower plans to drill up to 18 stratigraphic wells each about 500 metres deep to evaluate the prospective coalbed methane (CBM) potential of the Cretaceous Strzelecki Group.

“The CBM potential in the Gippsland Basin occurs in the black coals of the Early Cretaceous Strzelecki Group,” Planet Gas director Peter Nightingale said.

“The Gippsland Basin is a complex rift basin system with the north-east trending structural lineaments composed of anticlines, synclines, monoclines, extensional and compressional faults.”

Meanwhile just 20km away, Karoon Gas is continuing drilling at its Megascolides CBM prospect. Karoon is also targeting the Cretaceous Strzelecki formation, as well as a deeper conventional petroleum gas target at the Crayfish Group interval which produces gas in the Otway Basin.

"Early qualitative results show gas is present on the coal and gas desorbsion is occurring,” Karoon managing director Bob Hosking said.

“This is supported by mud logging data showing methane, ethane, propane, butane and pentane through the cored section with high peaks associated with the coals."

When all the well data is collected and analysed there will be a sound basis for more quantitatively identifying CBM ‘sweet spots’ on the seismic on which to produce potential production wells, Hosking said.

“The forward plan is to acquire more 2D seismic then identify, drill and appraise shallower CBM locations,” he said.

“This plan allows all Megascolides data to be fully evaluated prior to proceeding with the drilling campaign. Acquisition of the seismic, adding to the limited existing grid, will locate the best drilling locations across the entire permit.”

Karoon has a 100% registered interest in PEP 162.