Exoma Energy spuds second Galilee Basin well, targets shale oil and gas 

(MENAFN - ProactiveInvestors - Australia) Exoma Energy (ASX: EXE) has spudded the second well in its 2012 exploration program with CNOOC that targets coal seam gas, shale oil and gas as well as conventional oil targets in the Galilee Basin, Queensland.

Darr-1 is a shale gas core hole aimed at providing further data to evaluate oil and gas resources in the Toolebuc Shale.

Analysis of this core will provide information on the distribution of shale properties needed for the appraisal of the shale resource identified by the Bessies, Euston and Katherine wells drilled in 2011.

It will also provide a low cost secondary test of the southern extent of the Permian Coal Measures in ATP 1005P by quickly drilling to basement after coring the Toolebuc.

While Exoma does not expect to intersect any coal here, the log data is expected to confirm the structural geology that affects the Bradley Creek-1 coal seam gas well that will be drilled later this year.

Darr-1 will be plugged and abandoned after it is drilled and logged.

Exoma said early exploration has indicated the Toolebuc shale could hold more than 3 million barrels of oil equivalent of in place oil and gas per square kilometre.

This is encouraging as the joint venture permits cover about 20,000 square kilometres of Toolebuc Shale while Exoma's newly awarded permits adjacent to ATP 999P cover a further 19,000 square kilometres of deeper shale.

The company said this is a strong indication the Toolebuc Shale held real potential as a major resource development.

CNOOC is earning its 50% stake in the five Galilee Basin blocks by providing the initial A50 million of joint venture expenditures.