Both permits are in the Clarence Moreton Basin in northeast New South Wales.

A 115km 2D dynamite seismic program has been approved for the two permits, which are in the central and southern portions of the basin

The partners recently completed a systematic reprocessing of 215km of pre-existing seismic data covering PEL 426, which is being interpreted. In PEL 13 reprocessing of 300km of pre-existing seismic is in progress.

The pre-existing seismic, acquired by a combination of 2D explosive and vibroseis, was shot mainly in the 1970s, according to Metgasco.

“Prior to the work by the joint venture, it had never been reprocessed using modern geophysical reprocessing technology such as surface consistent statics and surface consistent deconvolution,” the company said.

The reprocessing on PEL 426 has identified and-or clarified several structures the two companies believe have “considerable potential” to host conventional oil and gas resources.

Scheduled for October or November, the forthcoming new seismic is intended to provide further detail on these structures. Results are anticipated to be available by the first quarter of next year.

Under farm-in arrangements with Molopo, Metgasco recently earned an initial 51% interest in the coal seam methane rights in PEL 13 and it has exercised its option to increase this to 75%.

The company is also earning a 50% interest in the conventional gas rights.

In PEL 426, Metgasco is earning a 50% interest in both CSM and conventional rights.

The pre-existing seismic reprocessing and new 2D seismic acquisition activities contribute to Metgasco’s farm-in obligations in these permits.