Comet Ridge Inks Farm In With Queensland Energy Resources

Coal seam gas explorer Comet Ridge Limited has signed a three-Stage farm-in agreement with Queensland Energy Resources Pty Limited (QER) to earn up to 75% of the Lake Galilee Farm-in Area. The farm-in area is located in the south east of permit ATP 1015P, between the east and west parts of Comet Ridge’s ATP 744P, in which Comet Ridge has a 100% interest.

The Lake Galilee Farm-in Area consists of two separate areas totalling approximately 825 km 2. These areas represent 21% of QER’s total permit area in ATP 1015P. QER will retain a 100% interest in the remaining area of ATP 1015P, while Comet Ridge will become Operator of the Lake Galilee Farm-in Area.

Comet Ridge plans a three well exploration and appraisal drilling programme in this part of the Galilee Basin for 2012, which will further appraise the extent and characteristics of the coals in the Gunn Project Area.  3C Contingent Resources in the Gunn Project Area currently stand at 1870 PJ.

One pre-pilot production well (Gunn 2) is planned  in ATP 744P with two  core wells in the Lake Galilee Farm-in Area which will meet Stage 1 farm-in commitments. Two of these wells will provide valuable information across the Gunn Project Area, while the third and most easterly well will test a different play concept.