The Perth-based company already has the exploration rights to four other permits in the state: ATP806P, ATP758, ATP759P and ATP831P. It also has a single permit in Tasmania.

In a statement yesterday, Pure said it had been awarded permit ATP852P, a 1050 square kilometre block, where it was named the preferred bidder last November.

“This new permit moves Pure into the Walloon CSG Play Fairway, which is proven to be productive and prolific in nearby fields, and is close to existing infrastructure and markets,” managing director Steve Beardsall said.

The Walloon coals are already in production at Berwyndale South and Argyle, where Queensland Gas Company is operator, and Daandine, Kogan North and Tipton West, operated by Arrow Energy, and currently being piloted at Sunshine Gas’ Lacerta project.

Well-developed coal seams exist in both the Juandah and Taroom coal measures, with commercial gas contents in the Walloon Play Fairway.

As a result of existing wells and seismic coverage, the company will proceed directly to exploration drilling in the second half of 2007.

If the first three core holes are successful, the company plans to rapidly move into a pilot testing program in the second permit year in order to establish commercial viability and to certify reserves.

This latest permit award will see Pure become one of the largest CSM acreage holders in Queensland, with a total of 18,500sq.km.

Arrow holds a 14% interest in Pure, which could increase via options to approximately 25% on a fully diluted basis