The company says its newly awarded ATP 837P, on the Moonie High in Queensland’s eastern Surat Basin, has excellent CSM potential in the Walloon Coal Measures.

The permit lies at the southern end of the prolific Undulla Nose CSM trend with coals at depths of 500-800m throughout most of the permit, according to Rawson.

“A 3D seismic program is planned for early 2008,” the company said.

“Drilling of CSM wells would occur after this seismic has been processed late in 2008.”

Rawson has a 50 percent stake in ATP 837P; Energetica Resources holds the remainder. But these interests would reduce on farm-out and negotiations are underway with some CSM operators to help finance this project, Rawson said.

Applications have also been made for two areas (ATP873P and ATP887P) with CSM potential in the western Surat Basin.

The company also said additional CSM potential exists in shallow Permian coals in the northern half of its 100%-owned EP97 permit in the Northern Territory’s Pedirka Basin.

“Partners are being sought for seismic and drilling for 2008,” Rawson said.

“The wide spread of interests that have been put together by Rawson means that the company will become an active participant in at least two and maybe more CSM projects in 2008. This gives the company potential early cash-flow from coal seam methane.”

In 2005, Rawson began its listed life with oil and has exploration permits in the Pedirka, Cooper and Surat basins, as well as the onshore Otway in South Australia.

In March this year, the company won an exploration permit in the Bass Basin off Tasmania’s north coast.

Then in May, Rawson announced it had teamed up with Texas-based Geochemical Exploration Services to explore for uranium in North America.

Last month, the company received a boost when Adelaide Energy’s Jacaranda-2 well found gas and condensate in the unfashionable onshore Otway Basin where Rawson holds two exploration permits.