(MENAFN- ProactiveInvestors - Australia) Exoma Energy (ASX: EXE) is pleased with the progress made by the 2012 Galillee Basin drilling program it carried out with CNOOC Gas & Power and is now working to understanding the results.
"We are exploring a huge area of a remote frontier basin, and it is a great credit to the professionalism of our team that we have safely completed such a broad and comprehensive program in such a difficult environment," chairman Brian Barker said.
"We are now working to understand the findings of the 2012 drilling programme regarding our unconventional resources. In addition, we will continue to pursue additional projects that capitalise on our geological expertise and operational capability."
The company had drilled 12 wells across the five permits after cutting short its original plans due to unexpected winter rain earlier in the year and releasing the rig at the completion of the Silverfox-1 shale exploration well to ensure that it was not shut in due to early summer storms.
Exoma noted that exploration for coal seam gas and shale oil and gas, the main targets of the program, required extended laboratory testing of rock samples to measure the hydrocarbon content and other geotechnical characteristics that determine whether commercial production is likely to be achieved.
The company had sought to gather detailed data from a number of diverse locations in order to determine whether the characteristics are uniform over a broad area or whether they vary significantly.
This data set progressively becomes available as tests are completed and the final results are expected in early 2013.
Exoma will then be in a position to further consider the results of the 2012 program and will provide additional market updates as conclusions are drawn from these important studies.
It added that results from the unsuccessful Katherine West-1 conventional oil well are currently being evaluated with results of the Katherine-1 well and additional conventional oil prospects for possible inclusion in a 2013 drilling program.
CNOOC is earning a 50% interest in the five permits that make up the Galilee joint venture by providing the first $50 million of joint venture expenditures.
The company recently expanded its agreement with Exoma to take an additional 10% stake in the five permits by carrying a further A$12.7 million in expenditures under the Additional Farm-in Period, which expires on 31 December 2015.
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