It was a subdued start on Tuesday, the 20c issue slumping to 17c. It is trading at 17.5c today.
The company’s IPO was oversubscribed and raised approx. $4.7 million, which will now be spent on at least two wells in its 100% owned permits PEP 162 and EL 4537, targeting an estimated gas in place potential of 1 TCF and upwards.
Upstream Petroleum has been engaged to provide technical and management assistance in the planning, drilling, and evaluation stages. Drilling has now been scheduled for August 2004 and will test shallower depths for CBM potential along with a deeper potential Crayfish Group equivalent for conventional oil and gas potential.
Additional ongoing geotechnical analysis has indicated that the Black Coal CBM targets are at least 100 – 200 metres shallower and with potentially better permeability and higher reserves than originally anticipated, this is more beneficial for successful CBM exploitation.
The exploration area in question is around 120 km from the CBD of Melbourne and 25 km from the Latrobe Valley.
Karoon is also currently in discussions with energy companies for additional CBM projects.
