Australian energy company Eneabba Gas (ASX: ENB) has wrapped up coal resource definition drilling over the the first of the Company’s ten Sargon Tenements in the Mid West region of Western Australia.
As outlined in our ASX announcement of 30 October 2009, this programme resulted in a JORC Code compliant coal resource of 194 million tonnes.
Since completion of this programme, the Company has sought the opinion of Xstract Mining Consultants in regards to the Company’s JORC Code Resource Statement, recent transactions related to projects offering underground coal gasification potential and the positioning of the Company’s coal resources relative to other UCG participants.
Based on Xstract’s report, Eneabba will now be reviewing the recommendations, so that the Company’s 2010 exploration programme will achieve a more detailed UCG sampling within E 70 / 2758, greater geological, geotechnical, hydrological and UCG studies on the coals overburden, and surrounding country rocks and the design of a strategic exploration programme for the remaining Sargon Tenements.
It is the intention of the Company in its 2010 exploration campaign to achieve the objectives of the Xstract recommendations.
In discussing the relative positioning of the Company’s coal resources relative to other UCG participants, Eneabba notes a recent ASX release by Cougar Energy.
Based on this announcement, Linc Energy, Carbon Energy and Cougar Energy have implied A$/GJ (for 3P reserves) of A$0.02 to 0.09 per GJ, based on their Enterprise Value and implied recoverable UCG reserves.
In addition, offers of up to A$0.18/GJ have recently been bid for at least two Australian UCG projects.
Eneabba Gas is focused on the development of the 168MW gas-fired Centauri 1 Power Station on Company owned land near Dongara in the Mid West of Western Australia. Eneabba Gas proposes to market power from Centauri 1 to the fast growing Mid West region of Western Australia.