finally - a bit of action, page-7

Extract from ESG Quarterly report


PELs 6, 427 and 428
Bowen, Surat and Northern Gunnedah Basins, New South Wales
Coal Seam Gas Rights (respectively): 50%, 50% and 40%
It is expected that work programme commitments for farm-in to Petroleum Exploration Licences 6, 427
and 428 will commence during February 2009. The work programme, to be operated by ESG, involves:
• drilling of the Moree-4 corehole, to earn a 50% interest in the coal seam gas rights of PEL 427;
• drilling of the Kurrabooma-1 corehole, to earn a 40% interest in the coal seam gas rights of PEL 428;
and
• acquisition of around 100 km of seismic, plus subsequent drilling of a corehole, to earn a 50%
interest in the coal seam gas rights of PEL 6.
Target coals within the farm-in areas are generally younger than those targeted in the Narrabri Coal
Seam Gas Project and include areas of Walloon coal development.
An ESG internal estimate indicates that the prospects to be investigated as part of the first stage of the
farm-in could contain a high-side prospective gas resource of 3,500 B cf.