Oilies eye Westralian’s WA CSG prospect
WESTRALIAN Gas and Power says it would be willing to engage a partner to help explore its coal seam gas prospect near Busselton, southwest of Perth, after the company was approached by several interested parties.
The company was approached by several potential joint venture partners following the results from the Kaloorup Road-2 well on Drilling Reserve 10.
Kaloorup Road-2 is the first of two wells to be drilled on the prospect to explore for CSG, and test results from rock chip samples have identified three significant methane gas readings that warrant further investigation.
Speaking to PetroleumNews.net, executive chairman Peter Briggs said he couldn’t elaborate further on the potential partners but said the company was continuing discussions.
“We’re interested,” he said. “We’re only a small company and the whole business of oil and gas exploration is not cheap, and so therefore we would only be too pleased to have a partner to help us.”
He added that the company was now planning to take a number of sidewall cores over the three zones of interest before designing a fraccing program for the extraction of gas samples.
“There’s gas there it’s just a matter of finding how much,” Briggs added.
In other news, Westralian has extended the closing date of its share purchase plan to raise up to $1.152 million due to adverse conditions on the Australian share market.
The company said it decided to extend the closing date of the share purchase plan to July 23 because since the capital raising was announced on May 3, the Australian share market had experienced adverse conditions due to international factors and the proposed new resources tax announced by the federal government.
It added that the extension would allow all eligible shareholders the opportunity to participate in the share purchase plan in an improving market environment.
The funds raised from the SPP will be used for working capital and to fund the company’s current activities.
