Biogenic Natural Gas
Biogenic Natural Gas within EL 4416
The deeper lignite seams within EL 4416, IER's wholly-owned exploration licence, that may not be mined economically, are prospective for huge amounts of biogenic natural gas ('BNG'). A 9-well drilling program during 2007 and 2008 demonstrated the presence of permeable, gas-bearing lignite seams. During an initial short-term testing program, gas was produced to the surface in sub-economic quantities.
Natural Gas Resources
IER recently engaged a specialist company to conduct a thorough review of available reservoir and geological data of the Gippsland Basin lignite seams. Their preliminary analysis suggests that the Gas Initially In Place ('GIIP'), in the un-mineable lignite seams, could be in the range of 6 to 35 trillion cubic feet ('TCF').
About Biogenic Natural Gas
The deeper lignite seams within EL 4416 contain biogenic natural gas, which is created by microbial activity within the lower-rank coal. In general, biogenic natural gas:
- Is stored within the coal seams by hydrologic pressure, so that gas is released when the water pressure is removed,
- Is of pipeline-quality gas that can be sold into conventional natural gas pipelines,
- Is made up of nearly 100% methane gas, but may contain minor quantities of other gases, and
- Is associated with large volumes of fresh water (contained in the coal seams) that can be used for livestock and irrigation without significant treatment.