By OGJ editors
HOUSTON, Dec. 6 -- CSM Energy Ltd., Sydney, took a farmout to develop a coalbed methane pilot with Energy Investments Ltd., Perth, on the Eastern Block of ATP 814P in Queensland east of Moranbah.
CSM Energy will earn a 50% interest in the block by funding and drilling 100% of 4 CBM pilot wells starting in February 2007, flow testing, and independent gas reserve certification. CSM has a right of first refusal for 12 months to take a farmout on the license's Central Block on similar terms.
ATP 814P comprises eight tenements that total 3,400 sq km in the northern Bowen basin. They contain extensive coal measures of the Late Permian Blackwater Group, including Moranbah, Fort Copper, and Rangal coal measures. ATP 814P is adjacent to Arrow/CH4's Moranbah CBM development (OGJ, July 25, 2005, p. 32).