Ambassador gassed about CooperWednesday, 29 August...

Ambassador gassed about Cooper


Wednesday, 29 August 2012

AMBASSADOR Oil and Gas has pumped up the potential of PEL 570 in the Cooper Basin, declaring the development of a major new Australian energy source is one step closer on the back of an upgraded gas-in-place estimate of more than 20 trillion cubic feet.

Two weeks ago, Ambassador announced it had doubled the coal seam gas potential of PEL 570, to 13Tcf, after a “detailed study”.

Yesterday, it added another estimate, 8Tcf in tight rocks and deep basin gas potential, to take the permit’s total potential to 21Tcf.

Ambassador managing director Tino Guglielmo said the “massive potential” of the Cooper Basin’s unconventional formations had been largely ignored until now.

“Ambassador aims to capitalise on the strong gas demand from Australia’s rapidly expanding LNG export industry to develop this vast, as yet untapped, gas potential,” he said.

“The shale, tight rock and deep coal seams in PEL 570 … offers tremendous upside potential for our shareholders.

“After completing these detailed studies, Ambassador is now in a strong position to begin the exploration and ultimately the development of these resources.”

Ambassador shares have slumped recently after two exploration wells in PEL 516, Shocking-1 and Kruger-1, were plugged and abandoned.

Yesterday, the company’s shares jumped 6.2% to A8.6c.