drilling commences plus aoe play

ASX ANNOUNCEMENT 12th April 2007
FOR IMMEDIATE RELEASE
PURE ENERGY RESOURCES LTD COMMENCES DRILLING IN TASMANIA
The Directors of Pure Energy Resources Ltd (Pure) are pleased to announce the commencement of drilling for Coal Seam Gas (CSG) in its Tasmanian tenement SEL 32/2003.The first CSG target in northeast Tasmania (Fingal-Dalmayne, Figure 1, page 3) covers an area of approximately 300 km2 with over 120 Mineral Resources Tasmania exploration holes already drilled (the dots in Figure 1 represent existing boreholes).
To take advantage of drill rig availability the drilling operations to twin the Fingal –55 and Fingal-41 wells will be completed in two stages.
The stage one operations involved drilling topholes for the two wells to a depth of circa 200 meters is now complete. Stage two, which is expected to commence later this quarter, will see the drilling of the core holes.
If the core holes prove gas content and permeability, the Company plans to quickly move into pilot and production, leveraging the existing boreholes to fast-track reserves certification.
The Tasmanian tenement covers 11,295 km (Figure 2, page 4). The Tasmanian Basin is a mature coal-mining production province, with significant coal resources, which Pure believe to have significant potential for CSG. Thick and extensive coal seams at the appropriate depths have been proven by over a century of coal exploration and development. The potential leverage of this high density of existing coal mining drill holes makes this acreage particularly attractive for rapid progression from appraisal into pilot and development.
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Level 17,80 Albert Street, P.O. Box 15569 City East Brisbane Qld 4002
Tel: (07) 3503 8300 Fax: (07) 3503 8399
Email: [email protected]
www.pureenergyresources.com.au
Level 17,80 Albert Street, P.O. Box 15569 City East Brisbane Qld 4002
Tel: (07) 3503 8300 Fax: (07) 3503 8399
Email: [email protected]
www.pureenergyresources.com.au
This historical coal exploration drilling has demonstrated the Fingal-Dalmayne Coalfield to be an attractive CSG prospect:
• areally extensive, correlatable coal seams (>100 km2)
• Total net coal thickness in the order of 10 to 20 metres, with appropriate burial depth and coal maturity, for gas generation
• the presence of gas proven by a methane gas explosion at the Duncan Colliery in 1977 (within 5 kilometres of the proposed drilling)
• evidence of an active hydrologic system, suggesting increased potential for biogenic gas generation, and permeability
• evidence of extensional structuring, for fracture enhancement and permeability
In addition, there is the potential of existing commercial infrastructure:
• the Tasmanian Gas Pipeline (TGP) and related gas distribution networks are in place and run directly through the tenement near some of the most prospective CSG areas
• the Transend electricity transmission system runs throughout the tenement, with distribution arms extending within five kilometres of the richest coal areas of the Fingal-Dalmayne region, Pure’s first drilling target.
Pure Energy’s objective is to demonstrate both the distribution and economic viability of CSG production in the Tasmania Basin.