Sentry Petroleum announces award of coal tenement

Sentry Petroleum Ltd announced today the award of EPC 1758, a prospective thermal coal exploration tenement in the Eromanga basin situated within Sentry’s existing oil and gas explorations tenements. An initial review of the area indicates significant prospectivity in the Winton Coal formation. The Cretaceous Winton and Mackunda Formations are composed of interbedded mudrock, sandstone, coal and carbon-bearing mudrock. An initial review of well completion reports indicates multiple coal sections.

A company representative commented, “The award by the Department of Mines and Energy of EPC 1758 enables us to control specific rights on prospective coal seam gas potential within ATP 862. We see significant promise and wanted to lock up the rights as soon as we could; with the award of EPC 1758 we have done it.”

On regional prospectivity the company advises on announced deposits of coal in permits 100 km to the east of the Sentry Application area by Australian miner, East Energy Ltd. East Energy washability data indicate a medium ash product with generally good yields, suitable for thermal coal markets.

Sentry further advises that potential coals within EPC 1758 area are more deeply buried and hence possibly higher grade. EPC 1758 covers an area located closer to the sub-basin depocentre, which should allow thicker coal seams to have been deposited.

The company advises that an initial programme will be designed to systematically confirm, delineate, and appraise the potential so that production feasibility can be ascertained. Specifically, loading digital well data, seismic data, and remote sensing data for subsequent mapping of prospective accumulations. Initial drilling phases will include coring and analysis of coal quality, with a follow up phase of more detailed infill drilling, then delineation of the resource to possible reserves status.

Prospective coal seam gas operations in Australia have been hit with uncertainty over the proposed 40% super resource tax, which the Australian government is attempting to implement. However, after faltering share prices and investor uncertainty, the Australian Resources Minister, Martin Ferguson, has hinted that the government may be willing to compromise on some aspects of the proposed tax in order not to endanger the coal seam gas industry, as some projects have already been delayed as a result of the tax.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/21062010/sentry_petroleum_announces_award_of_coal_tenement/