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Exoma Energy And CNOOC Complete Another Galilee Basin Exploration Well

Exoma Energy (ASX: EXE) and Chinese giant CNOOC have completed the seventh exploration well of their Galilee Basin drilling program that had targeted both coal seam gas and shale oil and gas.

Nora-1 in ATP 991P cored a 217 metre section of Betts Creek and Aramac coal measures as well as 17 metre section of the Toolebuc Shale.

A total of 15 coal core samples were put on desorption testing to measure gas content though preliminary analysis indicated that these have lower than expected gas content.

Chip samples were also recovered from the Toolebuc for laboratory testing to measure oil content and thermal maturity.

The EDA-2 drill rig has been released to drill the Wardoo-1 well.

The well is part of up to 22 wells Exoma and CNOOC are drilling to appraise the coal seam gas, conventional oil and shale oil and gas resources in their acreage, which covers 27,000 square kilometres.

CNOOC is earning a 50% interest in ATP 999P and the other four permits that make up the Galilee joint venture by providing the first $50 million of joint venture expenditures.

The company recently expanded its agreement with Exoma to take an additional 10% stake in the five permits by carrying a further A$12.7 million in expenditures under the Additional Farm-in Period, which expires on 31 December 2015.

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