Exoma Energy has intersected coal with the sixth well in its 2011 coal seam gas exploration program in Queensland’s Galilee Basin.

The Prairie-1 well is part of a 12-well program being drilled under a joint venture between Exoma and CNOOC Galilee Gas Company Pty.

CNOOC the largest offshore oil and gas producer in China is contributing the first USD 50 million of exploration expenditure to earn a 50% stake in each of Exoma five permits in the region.

Prairie-1 targeted the Permian coal measures. Interim results show that the well encountered 16 metres of coal, including a thick 6 metre seam and a 31 metre section of Toolebuc shale.

Coal samples totalling 11.5 metres have been recovered for desorption testing and are degassing vigorously.

The drill rig has been released to mobilise to Hollowback-1, the next coal seam gas core well in the program. Hollowback-1 is expected to be the last well drilled in 2011, due to expected wet weather which will limit access to the area.

Once available, laboratory results on the shale and coal cores from the 2011 drilling program will be factored in to the design of the 2012 drilling appraisal program.

(Sourced from www.proactiveinvestors.com.au)