Greenpower said the seismic mapping of the Cattamarra Coal Measures within EP 447 by Saitta Petroleum Consultants showed the resources reside in 10 prospects.

The company said that while most of the prospects are at depths of more than 2000m, the seismic data indicated substantial fracturing within the prospects.

Greenpower added the strength of the mud gas peaks encountered in the Walyering-4 well that was drilled in 2001 suggested gas-filled rather than water-filled fractures, possibly removing the need for de-watering of the coal seams prior to gas production.

Walyering-4 had intersected 50 feet of gassy coal within an interval from 2850m to 2950m. Wireline log evaluation of these coal seams indicates that these coals carried an average of 300 cubic feet of gas per tonne of coal.

"Even though these findings are based on seismic data this is a very positive indication for commercial coal seam gas production from this area," director Ron McCullough said.

"With gas shortages in Western Australia we are seeing increasing interest in operations in the state. The company is devoting close attention to next steps with these assets."