finally - a bit of action, page-6

Background to Edgeroi 1


Mr David Casey, Managing Director of ESG, advised that "the Edgeroi-1 corehole has confirmed ESG’s prediction that significant coal development exists in the northern portion of PEL 238. The Edgeroi-1 well intersected at total of 23.5 metres of coal, including 10 metres in the primary target Bohena coal, in an area historically considered to be of low prospectivity. This is consistent with results from the Bibblewindi and Dewhurst areas, showing thick, fractured coals with high gas contents". Internal resource estimates suggest that the Edgeroi Field contains an upside potential recoverable gas volume of 634 PJ.

"The results of the Edgeroi-1 corehole are particularly exciting because the corehole was the first of the wildcat oriented exploration coreholes to be completed this year. Edgeroi-1 has successfully demonstrated the coal seam gas potential of the northern portion of PEL 238, more than 50 km to the north of the existing and proposed Bibblewindi production pilots".

"Furthermore, the Edgeroi-1 results auger well for ESG's farmin to PEL 427, located to the north of the Narrabri CSG Project and into which it is anticipated the coals intersected at Edgeroi-1 may extend".