PLANET GAS LIMITED - ASX: PGS

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Description

Planet Gas Limited is an Australian-based, ASX-listed Coal Bed Methane (CBM) and Geothermal energy exploration and development company.

ESPONDA PROJECT, USA

The Esponda Project comprises two project areas, East Esponda which has been developed under joint venture arrangements and is currently being dewatered in advance of the commencement of production and West Esponda which has begun to be developed by the completion of a pilot production program and an extension of that production program. The Esponda Project is located approximately 25 kilometres southeast of Buffalo, Wyoming, and totals 11,453 net hectares (28,303 acres) in Townships 47 to 50 North, Ranges 79 and 80 West, Johnson County, Wyoming.

ORIVA PROJECT, USA

The Oriva Project comprises two contiguous project areas, Oriva Throne which is in production and Oriva Federal which is in the permitting phase:

Oriva Throne: The consolidated entity holds a 75.975% Working Interest (60.75% NRI) in the Oriva Throne tenements which total 146 net hectares (361 acres). Oriva Throne is operated by Emerald Operating Company and Rocky Mountain Exploration of Denver, Colorado which holds the remaining 24.025% Working Interest (19.25% NRI). The entire leasehold interest is subject to a 20% land/mineral owner royalty. Production during the half year at Oriva Throne was from the 5 state mandated 32 hectare (80 acre) spacing CBM pad sites each of which have been developed with 3 wells, producing CBM from the Felix, Smith, Anderson and Wall Coal seams plus 3 ¡®exception location¡¯ Wall seam wells.

Oriva Federal: The Company holds a 100% Working Interest (85.5% NRI) in the Oriva Federal tenements which total 359 net hectares (887 acres). The entire leasehold interest is subject to a 12.5% mineral owner royalty and a 2% overriding royalty. On the basis of the State mandated 32 hectare (80 acre) well spacing, the Oriva Federal tenements have the capacity for 11 pad sites.

SKULL CREEK PROJECT, USA

The Skull Creek Project is located in the western portion of the Cherokee Basin of southeast Kansas. The tenement occupies 11,573 net hectares (28,598 acres) in Cowley, Elk and Chautauqua Counties near existing infrastructure and within a receptive State regulatory regime. The leases are not restricted to CBM, but convey all oil and gas rights to the consolidated entity. Conventional oil and gas targets may also exist in the Skull Creek Project and will be evaluated during all drilling operations. Underlying the region are Mississippian and Ordovician aged carbonates that yield conventional hydrocarbons. Also, the Ordovician sediments serve as a water disposal zone for co-produced coalbed methane water. Additional conventional hydrocarbon occurrences in the overlying strata of the Kansas City-Lancing Group are potential targets.

CLARENCE MORETON PROJECT, NSW

Situated 65 km southeast of the Gold Coast and 130 km from the large electricity market of Brisbane, this is a region forecast to face electricity supply limitations in the next few years. Primary National Electricity Market (NEM) electricity transmission lines also pass through the Clarence Moreton tenement. The tenement encompasses a large portion of the Clarence Moreton sedimentary basin that hosts thick, thermally insulating sequences of coal and naturally permeable aquifers. A large, potentially heat producing, granite has also been modelled in the basement below depths of 3,000 metres. In addition the project will benefit from a large database of historic petroleum wells and geophysics in the basin. It is anticipated that this data will assist in the calculation of a code-compliant, inferred geothermal resource.

EROMANGA PROJECT, QLD

The Company's Eromanga Licences cover 6,101km2 of prospective ground in Australia's Cooper/Eromanga geothermal province. Located north of Geodynamics' Habanero Project (239,400PJ1) in the Cooper Basin and the Tirrawarra Project (41,000PJ1) and 10km directly south of Australia's only operating HSA geothermal power plant at Birdsville. The Eromanga project is highly prospective for HSA geothermal resources. The Birdsville HSA geothermal power plant is producing 120kW of electricity from 98.7°C geothermal fluids water drawn from a depth of 1,028 metres on the northern border of the tenement. Eromanga also has significant potential for large granite hosted Hot Fractured Rock geothermal resources of the scale seen at the adjacent Habanero project. The Eromanga licences cover two large gravity lows identified as buried granite bodies. The granites are overlain by a thick sequence of Eromanga Basin sediments that includes known high flow rate hot sedimentary aquifer horizons of the Cadna-owie and Hutton sandstone. Average geothermal gradients from petroleum and geothermal wells within and surrounding the tenement are amongst the highest recorded in Australia. These range from 51°C/km in Haddon Downs 1 petroleum well to approximately 70°C/km at the Birdsville geothermal power plant.

GLOUCESTER PROJECT, AUSTRALIA

The Gloucester geothermal project covers 1,231km2, or approximately 90% of the Gloucester Basin. The project area begins 60km northwest of Newcastle, New South Wales' second largest population centre. High voltage NEM powerlines pass directly through the licensed area. The Gloucester basin consists of a thick sedimentary sequence with thermal insulating coal horizons and potential aquifer units overlie a discrete gravity low interpreted to represent a buried, heat-producing granite. Initial temperature modelling indicates average geothermal gradients in the basin are in the order of 50°C/km. The Company's initial work program at Gloucester will concentrate on identifying prospective aquifer units in the basin stratigraphy and on using existing coal and coal seam gas wells to define code-compliant, inferred geothermal resources.

INNOT HOT SPRINGS GEOTHERMAL PROJECT, QLD

Planet Gas is currently the preferred tenderer for the Innot Geothermal Project and anticipates the granting of the exploration licence to occur in late 2009. The Innot Geothermal project, covering 596km2, is 100km from Cairns and 250km from Townsville, in northern Queensland. The project is situated only 10km from the 275 KV power lines of the main east coast grid. The Innot Geothermal project is distinct from most other geothermal projects in Australia, with a known geothermal spring system expressed at surface in the immediate vicinity of the exploration permit.

LEIGH CREEK PROJECT, SA

The Leigh Creek geothermal project fits the Company's strategy of securing high quality geothermal projects proximate to power infrastructure. The project lies at the head of the NEM powerlines that connect the Leigh Creek coal mine and township to Adelaide and Port Augusta. The proposed development route for new 275 kV NEM powerlines connecting the geothermal projects of the Cooper Basin and the Paralana area to BHP Billiton's Olympic Dam mine pass through the tenement area. The Leigh Creek project is located within the South Australian Heat Flow Anomaly, a highly prospective region for geothermal resources, where average crustal heat flow is almost double that seen in other parts of the world. The region has already yielded a cluster of inferred geothermal resources totalling almost 1.5 million petajoules. This constitutes the largest cluster of geothermal resources defined within Australia to date. The heat flow and modelled temperature to 5km depth in the adjoining Parachilna project increases to the north, suggesting the potential for high heat flow and geothermal temperatures within the Leigh Creek project area.

Mine For

coal bed methane

Location of operation(s)

USA, South Australia, New South Wales, Queensland

Address

Level 2, 66 Hunter St
SYDNEY, NSW, AUSTRALIA

Phone

(61 2) 9300 3322

Email

Website

http://www.planetgas.com

Last Updated

03/03/2010