SAPEX announces an initial inferred coal resource estimate

SAPEX has reported an initial inferred resource estimate, prepared in accordance....

  SAPEX has reported an initial inferred resource estimate, prepared in accordance with the JORC code, for one of its Arckaringa Basin exploration licence areas in South Australia.These figures are available following an independent review of pre-JORC drilling data within SAPEX’s Wintinna East Exploration Licence (3325), undertaken by consultant group, Geos Mining.The results from the Geos Mining study, based only on previous drilling data, are that EL 3325 contains 690 million tonnes of inferred resources of sub-bituminous coal, with a target of between two billion to three billion tonnes of coal.SAPEX’s Managing Director, Andrew Andrejewskis said the outcome of the initial study on EL 3325 indicated a potential for some 207 Billion cubic feet to 1.1 Trillion cubic feet of Coal Seam Gas (CSG), based on a notional gas content of 300scf/t. Mr Andrejewskis said this outcome also enhanced the potential for value-adding options for the coal itself. “This CSG estimate only covers the area of EL 3325 and does not include the remainder of the Arckaringa Basin, which is held by SAPEX in seven Petroleum Exploration Licences (PEL) covering 65,000sqkm,” Mr Andrejewskis said. “SAPEX advises that its interpretation of coal occurrence on seismic in this general area indicates a large distribution of coal covering an area of at least 3,500km, which provides ample opportunity for major CSG resources,” he said. “Geos Mining is continuing with a similar study on another SAPEX coal exploration area, Weedina (EL 3326), which will be prepared in accordance with the JORC code and results will be announced on completion of this study.”