Monday, February 20

Ormil Energy targets coal seam gas potential in New South Wales with DDH1 core hole

Ormil Energy (ASX:OMX) has spudded the DDH1 coal seam gas exploration core hole in the Burragorang region south west of Sydney to test the Illawarra coal sequence for gas content and permeability.

The well in PEL 454, believed to be the first to target coal seam gas in the coal mining region, will be drilled to a depth of 560 metres to the base of the Illawarra.

Success could unlock the 1639 billion cubic feet of contingent gas resources that independent consultants MHA Petroleum Consultants believes could be present in the 168 square kilometre permit.

Core samples will be taken and desorbed in a laboratory to determine gas contents and composition.

Wireline logs will then be run on the core hole followed by drill stem testing if warranted.

The DDH1 core hole is being drilled as part of Ormil’s farm-in deal with Apex Energy to earn up to a 50% stake in PEL 454.

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