PMP 50100 – New Zealand

Comet Ridge’s permit PMP 50100 is located in the West Coast coal region of New Zealand’s South Island, and covers an area of 170 sq km. Comet Ridge has a 100% interest in PMP 50100. The permit is located adjacent to the town of Greymouth and its nearby coal mines, and is immediately south of Comet Ridge’s recently expanded 4,802 sq km Exploration Permit PEP 50279.

The Paparoa coal measures extend across most of PMP 50100 and into the southern margin of the PEP 50279 permit area, and underlie the Brunner coal measures. Both the Paparoa and Brunner coals are mined in a number of places on the West Coast, with several coal mines located in the north of PMP 50100, the south of PEP 50279. Coal mining activities within the acreage recently added to the PEP 50279 exploration permit, east of the settlement of Runanga, is particularly intensive.

Twelve wells have been drilled in PMP 50100 to date, with ten of these drilled to test the CSG potential in the northern half of the permit since 1996. In addition to the twelve wells, there is a substantial data base of coal coreholes from within PMP50100. Comet Ridge has been involved in the drilling of five CSG wells between 2007 and 2010, in order to meet the obligations of Phase I & II of the Farm-in Agreement, primarily targeting the Brunner coal measures near the town of Dobson.

Well results immediately south of Dobson have been encouraging with respect to coal parameters such as coal thickness, gas content and gas saturation, and a brief flow test was conducted at the Westgas-2 well in 1997. However, in order to de-risk future wells, additional work is required to better understand the extent of both the Paparoa and Brunner coal measures in PMP 50100 and the local variability in coal permeability.

Since the withdrawal of its Joint Venture Partner in 2010, Comet Ridge has assumed control of the exploration and appraisal programme for PMP 50100, and has refocused the attention on better understanding the distribution of the Paparoa and Brunner coal measures across the permit before determining future drilling locations. In early 2011, an Airborne Gravity Gradiometry (AGG) survey was acquired over PMP 50100 and parts of PEP 50279, including the extension area.

External consultant, FrOGTech is combining the data acquired in the AGG survey, the 2010 Airborne Magnetic, Gradiometric and Radiometric survey, and the extensive well data (coal mining and CSG) in the area to generate detailed geological mapping of the area. In addition, NSAI are also assessing the CSG resources across PMP 50100 and the southern margins of PEP 50279.

The recent strategic expansion of the PEP 50279 acreage near Runanga allows Comet Ridge to focus on fully appraising the Paparoa coal measures in this area as a single resource. Comet Ridge intends to combine the insights derived from both the FrOGTech and NSAI studies to develop the optimal appraisal plan for the area. These studies will provide valuable information on the location of the highest value CSG targets within Comet Ridge’s permit areas.

Comet Ridge is planning a well drilling programme on the West Coast in late 2011 or early 2012.

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