The resource estimate was calculated using 80 acre blocks, the seam’s thickness and a gas content factor of 100 standard cubic feet per ton.

The Big George Seam is completely merged in the Western Gas area but splits into an upper and lower unit in the western portion of Kennedy Oil’s area. Where the Big George Seam is merged, its thickness is greater than 80 feet, and where split its total thickness is approximately 65 feet.

Planet Gas said it is pleased with the result as the Eastern Esponda block only represents 11% of the company's Powder River Basin land position.

Twenty wells have been drilled and completed as future producers by Western Gas and Kennedy Oil, as part of the Planets Gas JV agreements, while initial gas recovery from the Eastern Esponda block, subject to the dewatering program, is anticipated late in the September quarter.

As the joint venture wells move towards production, Planet Gas will turn its attention to its 100% owned ground. Permits are being sought to drill a number of stratigraphic wells, which are necessary due to the sparse drill density in the axial portion of the Powder River Basin.

These wells will be drilled to depths between 900 and 1200 metres and a complete geophysical logging suite will be performed to determine the areal extent and local stratigraphy within the lease block. It is anticipated that these holes will be drilled before the end of the June quarter.