Coal Exploration Program
The Company is focusing its exploration activities on its open cut opportunities – Dingo West and Arcturus. AMCI, as operator of the Alpha Project, will continue to fully fund an exploration program in that area. Exploration in our other areas is scheduled over the coming months including the Denison and Fernlee North tenements.
Arcturus, EPC 1221 (Bandanna 100%)
The focus for exploration in this Project is to investigate a shallow, potential open-cut, thermal coal deposit located around a northerly trending Arcturus Anticline. Already over 3,300 m of drilling has been undertaken including the acquisition of 253 m of coal quality coring. Details of exploration results to date were released to the ASX on 27 May 2009. On-going exploration is aimed at eventually delineating a mineable deposit of low moisture low sulphur, low ash moderate calorific value thermal coal.
Dingo West EPC 881 (Bandanna 100%)
As a result of a farmin with Macathur Coal some $6.65 mil has been spent on exploration up until April 2009. This has resulted in the recognition of a number of localised open cut opportunities, potential pit mine development, within the tenement. As announced on 8 May 2009 to the ASX Bandanna is now 100% holder of this Project and is investigating potential mine development involving a 0.5 – 1.0 Mt pa ROM PCI/thermal coal product. Additional exploration will be focused on further drilling within the individual localised deposits in order to determine the physical quality of the coals.
Alpha Project (EPCs 1048, 1049, 1179, 1180)
Already exploration fully funded by the operator and farminee, AMCI, has resulted in a maiden JORC resource of 982 Mt, comprising 922 Mt of Inferred Resource and 60 Mt of Indicated Resource. A statement to the ASX was made on 1 June 2009. Future exploration will focus on infilling and maturing additional resource categories. In addition, and as announced to the ASX on 17 June 2009, an exploration target of 570 Mt – 960 Mt (av 830 Mt) has been identified in another area of EPC 1049. Exploration is being fully funded by AMCI which can earn up to 50% of the Alpha Project by expending up to $25 mil.
Oil and Gas Exploration
To-date our exploration activity has focused on our southwest Queensland acreage in the Cooper Basin, ATP 539. Here a small seismic survey and the drilling of the exploration well Planet Downs-1 were partially funded by Bandanna. Future exploration is focused on initial review of existing data and planning for additional seismic coverage.
For our assets located in PEL 106 cased hole production testing of the Paprika-1 well, a suspended gas discovery is scheduled for later in the year. This will be undertaken by the operator, Drillsearch Energy Limited.