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Sunshine Gas Commences Drilling at the Polaris Coal Seam Gas Project

Source: www.gulfoilandgas.com 7/16/2008, Location: Not categorized

Sunshine Gas Limited advised that drilling has started at the Polaris coal seam gas (CSG) prospect situated in the highly productive Walloon Coal Measures. The program will include up to 12 wells. The first core-hole in this program, Polaris 2, has spudded and is currently coring ahead at 66m. The program is designed to confirm the net coal, gas content, permeability and productivity of both the Juandah and Taroom coal seams. These two coal sequences form the Walloon Coal Measures in South-East Queensland.

Recent work completed in adjacent permits has delineated certified reserves and contingent resources within a highly productive northern section of the Walloon Fairway. Polaris is situated within this fairway.

Following this initial drilling, Sunshine will rapidly implement a production testing program with a view to identifying commercial reserves in the permit. MHA Petroleum Consultants have been engaged for approval of a reserve certification program.

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