The Lorraine and Lorraine Sud permits were granted in November 2004 and July 2007 respectively. The permits cover a total of 988 square kilometres with the principal target of coal bed methane (CBM). The permits encompass a significant part of the Lorraine Basin which has historical coal production in excess of 850 million tonnes. The coal seams within the Lorraine Basin are of Carboniferous age and are characterised as black, gassy high ranking coals. Cumulative seam thicknesses commonly total 20 to 30 metres over 200 metre intervals and in places exceed 40 metres.

Research on the CBM potential of the permits continues to be greatly aided by the drill hole database and geological database of CdF. Over 600 stratigraphic wells have been drilled in the basin with many of the coal intercepts being tested for the methane content. While the western portion of the basin has many stratigraphic wells, the eastern and southern parts of the basin encompass a small number of exploration wells drilled for ESSO-REP and Enron Exploration France (‘Enron’). The company is building its own geotechnical data base which is based partly on the CdF information. 

During the 2008 financial year, principal activities focused on the planning and commencement of drilling activities at Folschviller 2 appraisal (or production test) well being drilled at a site 850 metres east of the town of Folschviller and immediately adjacent to the company’s previously drilled Folschviller St 1 stratigraphic well.

Two laterals and two sidetrack wells have been completed for a total of 433 metres of coal and a further 367 metres of gassy sediments. The target has been the coal of the Marie-Maurice-Noirel seam and the Alpha-Alpha’-Beta-Gamma seam.

The production test program will assist the planning of subsequent production test wells. These tests will be used to determine reserves and deliverability, and to evaluate the application of a lateral drainage strategy for appraisal and development of the Lorraine coals.

Resources CBM
The following table summarises the CBM contingent resources for the Lorraine project.

The estimates were conducted by the European Gas technical group under SPE and PRMS guidelines. The study allows for the planning and commencement of moving the contingent resources to reserve categories and the assessment of development and production options.

LORRAINE SUD

The Lorraine Sud permit area covers the immediate southern extension to the Lorraine permit. The area contains several anticlinal axes which in places are at depths suitable for CBM development. Analysis of the structure as exhibited on the seismic data shows that there is strong horst/graben development which in turn should result in improved permeabilities in the coals and more importantly in the sediments. The area has excellent tight gas potential.