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WELL COMPLETION REPORT Humboldt-1

GeoConsult Pty LtdPO Box 1002, Spring Hill, Qld

Phone: (07) 3831 6122 Fax: (07) 3831 6133

SANTOS QNT PTY LTD

HUMBOLDT-1

WELL COMPLETION REPORT

ATP 337P - QUEENSLAND

Prepared by:

C. Harwood

For SANTOS QNT PTY LTD

A.B.N. 33 083 077 196Level 14 Santos House

60 Edward StreetBrisbane Qld 4000

May 2006



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TABLE OF CONTENTSPage No.

CONTENTS PAGE 2

LIST OF FIGURES & TABLES 3

LIST OF APPENDICES 3

WELL DATA CARD 4

1.0 INTRODUCTION 5

2.0 WELL HISTORY 62.1 General Data 62.2 Drilling Data 7

2.2.1 Drilling Data Summary 72.2.2 Casing and Cementing 82.2.3 Deviation Surveys 112.2.4 Drilling Fluid Data 112.2.5 Water Supply 112.2.6 Plugs 11

2.3 Logging and Testing 112.3.1 Well site Geologist 112.3.2 Mud logging 112.3.3 Ditch Cutting Samples 122.3.4 Core Logging 122.3.5 Wireline Logs 122.3.6 Temperature Surveys 122.3.7 Drill Stem Tests 13

3.0 GEOLOGY 133.1 Reasons for Drilling 133.2 Reservoir 143.3 Stratigraphic Prognosis 143.4 Stratigraphy 163.5 Hydrocarbon Shows 17

4.0 DISCUSSION AND CONCLUSIONS 17

5.0 REFERENCES 18

6.0 ACKNOWLODGEMENTS 18



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LIST OF FIGURESFigure 1 Locality MapFigure 2 Drilling Time/Depth Curve Figure 3 Well SchematicFigure 4 Stratigraphy Figure 5 CH4 Log

LIST OF TABLESTable 1 Well Data CardTable 2 Casing and Cementing Summary Table 3 Deviation Survey DataTable 4 Desorption Samples Table 5 Wireline Log Summary Table 6 Stratigraphy Summary

LIST OF APPENDICESAppendix 1 Daily Drilling Reports Appendix 2 Wireline Logs Appendix 3 Geologists Logs Appendix 4 DST Results Appendix 5 Core PhotosAppendix 6 ACS Laboratories CBM Report Appendix 7 Survey Plan

Well Type: CSM Core holeWell Name:Humboldt-1



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The Well Card (Table 1) provides a summary of the wells history.

Table 1 – Well Data Card.

Licence: ATP 337P Joint Venture: Comet Ridge Farm-in Latitude: 24˚ 05’ 59.14”SEquity: Santos Gp 30% Budget Status: Phase 2 Farm-out Longitude: 148˚ 50’ 34.81”E

Seismic Reference: n/aVoting (%) Investment to C&S ($)

Santos QNT Pty Ltd Origin (CSG) Comet Ridge

*Interests post farm-in

30*30*40*

Ground Level: 245.33 m (final)Rotary Table: 250.36 m (final)Proposed Total Depth: 252 mRT (2mSS)Rig: Mitchell 120 (RT 5.03m)Nearby Facilities: n/a

Resource Estimate (Recoverable) Cost EstimatesMean Expected Volume: P&A: $ 241,715Mean Success Volume: C&S: n/aEMV: Completion / Frac: n/a

Cost Code: 5633010Objectives / Fluid Contacts / Predicted Pay Stratigraphy(m Subsea)Primary Predicted Net

PaySecondary Predicted Net

PayUnit Prognosed

(m)Actual

(m)Castor Seam Pollux Seam

3m coal 3m coal

Tertiary Rewan Gp Bandanna FmTop Aries Seam Base Aries Seam Top Castor Seam Base Castor Seam Top Pollux Seam Base Pollux Seam TD

23822148403827242118-2

-- 26-- 26

23129-2

Formation Evaluation Hole Design / Drilling IssuesWireline Logging:

TopIntermediate csg shoe

BaseTD

SpecificationsGR/SP/Density/Neutron/Resistivity/Acoustic Microscanner

Well Class: ExplorationHole Type:

Hole Size Depth Casing Size10”

6.75”3.88”

18192252

8.625”4.5”SWC’s: Nil

MDT’s: Nil Drill Fluid:Velocity Survey: No velocity survey required Deviation Sub-Surface Targets:

N/AMudlogging:No standard mud logging. Gas content/composition was measured.

Other Information / Hazards:

Predicted Flow Rate: -Formation Testing:

One off-bottom DST post logging over the combinedPollux and Castor seams

Nearby Wells:Somerby-1 18 km to WSWR3492 (coal exploration hole) 430 m to NWCoring: Continuous wireline retrievable coring conducted from

top Bandanna Fm to TD (total interval 60m)

Remarks / Recommendations :Standard Santos procedures followed.

APPROVED BY:Project LeaderStephen Taylor

Team Leader: Operations GeologyACS Laboratories – Warren Farley

Drilling EngineerSteve Furze



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1.0 INTRODUCTION

Humboldt-1 shallow CSM Exploration core hole well was drilled as part of the Comet Ridge farm-in in ATP 337P. The ATP 337P farm-in area is located to the south of the Comet anticline, down flank from the outcrop of the Bandanna Formation coals (Figure 1), and is approximately 40 km northeast of Rolleston, in the Denison Trough area of Eastern Queensland.

The CSM targets in the ATP 337P farm-in area are the Castor and Pollux seams which reach a cumulative thickness of up to 9.8m. The two seams merge into a single seam in the area of Mahalo-1. To the east, in the area of the proposed Humboldt-1 and Mira-1 core holes, the interburden increases to 3 and 7m respectively.

Humbolt-1 and Mira-1 were drilled to collect additional data on coal thickness, gas content and permeability to the east on the south-eastern flank of the Comet anticline. The results of the holes will allow conversion of mid and high side contingent resources to low side contingent resource on the south-eastern flank

Humboldt-1 is a twin of coal exploration borehole R3492, and was drilled 430 m to the southeast of its location. Borehole R3008 was drilled to a depth of 220m but did not penetrate the Pollux seam which was below TD. The Aries and Castor seams were 1.9 and 3.0 metres thick respectively.

Humboldt-1 spudded at 14:45 hours 16th February 2006. The well drilled through the Rewan Formation before intersecting the Bandanna Formation’s Aries, Castor and Pollux coal seams.

The 227mm conductor hole was drilled to 18 metres and conductor pipe (167mm) in place. The surface hole (161 mm) was then drilled to 192 metres and casing (114mm) cemented in place. HQ-3 coring commenced from this point and continued until T.D. was reached at 06:30 hours 20th February 2006 with a final depth of 252.8 metres (driller) or 252.3 metres (logger). Throughout the cored interval, gas monitoring and gas desorption sampling were carried out onsite, with a total of five one metre samples placed on gas desorption test.

Three wireline logging suites and two drill stem tests (DST’s) were undertaken over the Castor and Pollux intervals (to determine permeability) once total depth was reached.

The rig was released at 24:00 hours on 22nd February 2006.



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2.0 WELL HISTORY

2.1 General Data

Well Name and Number: HUMBOLDT-1

Location: Latitude: 24º 05’ 59.14" SLongitude: 148º 50' 34.81" EAMG Easting: 687 331.37AMG Northing 7 333 488.70

Elevations: G.L.: 245.33m A.S.L. R.T.: 250.36m A.S.L.

Petroleum Tenement: ATP 337P

Permit Operator: SANTOS QNT PTY LTD A.B.N. 33 083 077 196Level 14 Santos House 60 Edward StreetBrisbane Qld 4000Ph: (07) 3228 6666

Date Drilling Commenced: 14:45 hours 16th February 2006

Date Drilling Completed: 06:30 hours 20th February 2006

Date Rig Released: 10:30 hours 22nd February 2006

Drilling time to T.D.: 3.82 days

Total Depth: Driller 252.8 metresLogger 252.3 metres

Status: Cased, Cemented and Abandoned

7

A

0

24 04 00 S

MAHALO 1MAHALO 2 HUMBOLDT 1

STRUAN 1P-22 P-22

SOMERBY 1AD91-03 AD91-03

MIRA 1

AD91-05 AD91-05

A8D09-1M-016380-M13 AD91-06

LOWESBY 184-R402

SUNLIGHT 1OB81-3E

83-R314 83-R314

24 20 08 S148 31 50 E 148 57 01 E



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Figure 1. Location Map

2.2 Drilling Data

2.2.1 Drilling Data Summary

Humboldt-1 was the first of three proposed exploration wells drilled as part of the ATP 337P farm-in Phase 2 programme. This well was drilled to assess the productivity of the relatively shallow Aries, Castor and Pollux coal packages in the Comet Ridge area.

Below is the operations summary for Humboldt-1. It has been compiled from the daily drilling reports (Appendix 1). ACS Laboratories provided onsite drilling supervision for Santos Limited. Further details are provided in the time/depth curve (Figure 2).

Conductor Hole Size: 199/227 mm Interval: 0 – 18 m Drilling Fluid: Air

Humboldt-1 was spudded at 07:30 hours 10th February 2006, using the Mitchell Drilling Contractors Rig 120. The 199mm conductor hole was initially drilled to 18 metres prior to being opened up to 227mm as the conductor pipe would not pass 5 metres when initially run in hole. The conductor pipe (167mm) was ultimately cemented in the 227mm conductor hole to 17.7 metres with 10 sacks neat of general purpose (GP) cement at 15ppg.

-

88

84-

84-

SD

9

0

- 2-

0



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Surface Hole Size: 142 mm Interval: 18-192mDrilling Fluid: Air and Water

The 142 mm hole section was drilled to 192 metres. A total of 32 joints of 114 mm ultra seal casing were run, set at 192 metres, and cemented with 47 sacks QCL, GP cement (1800 litres) at 13.8ppg (35% excess), displaced with 1460 litres of water. Good returns occurred during pumping the cement however no cement was returned to surface. The pack off rubber, choke, flare line and flow line were rigged up and pressure tested to 200/700 psi prior to coring out the shoe.

Cored (HQ) Hole Section Size: 61 mm (HQ-3) Interval: 192-252.8 m Drilling Fluid: KCl Mud

After drilling out the shoe, the HQ-3 61mm core was drilled to T.D. of 252.8 metres. Two coal seams were intersected within the Bandanna Formation, with eight desorption samples taken to measure gas contents. On completion of wire line logs and DST’s, the hole was plugged and abandoned (refer to section 2.2.6 for details of plugs).

Rig was released at 10:00 hours on 15th February 2006

2.2.2 Casing and Cementing

Refer to Figure 3 for Well Schematic and Table 2 below for casing and cementing summary.

Table 2 – Casing and Cementing SummaryConductorHole/Casing Size 199 mm / 167 mm (778" / 658")Weight Not RecordedGrade Not RecordedShoe Setting Depth 18.3 m (3 joints)Quantity of Cement 10 sacks (20kg each) GP CementInterval Cemented To surfaceSurfaceHole/Casing Size 142 mm / 114 mm (558" / 412")Weight Not RecordedGrade UltrasealShoe Setting Depth 192 m (32 joints)Quantity of Cement 47 sacks of GP, 1800 litres, at 13.8ppg

slurry, displacewith 1460 litres water. Top up with 350 litres 14.5ppgslurry, plus 1 sack (40 litres).

Interval Cemented To surface



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Figure 2. Time-Depth Curve



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Figure 3. Well Schematic



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2.2.3 Deviation Surveys

Refer to Table 3 below for summary of survey data compiled from the acoustic scanner wire line log. The Acoustic Scanner data is also presented in Appendix 2.

Table 3. Deviation Survey Data

Depth Deviation Azimuth Depth Deviation Azimuth(metres) (degrees) (degrees) (metres) (degrees) (degrees)

180.0 5.6 324.47 230.0 4.12 193.35200.0 4.86 328.40 240.0 3.08 144.13210.0 3.5 30.72 246.5 4.63 339.54220.0 2.9 122.83

2.2.4 Drilling Fluid Data

Materials used whilst drilling this hole include KCl (x10), CR650 (x2) and Bakerloc (x30). Below is a summary of the drilling fluids that were proposed for use in this well:

(a) 0 – 18 m Air(b) 18 – 192m Air and Water(c) 192m - TD KCl Mud

2.2.5 Water Supply

Water was obtained from the land holder’s dam.

2.2.6 Plugs

Plug details are as follows:

1st Plug 252.8 – 159.5 metres. Cemented with 14.2ppg slurry (tagged and pressure tested at 159.5 metres), isolating coal intervals and surface casing shoe/

2nd Plug 60 metres – surface. Cemented with 14.2ppg cement slurry, isolating surface.

2.3 Logging and Testing

2.3.1 Well site Geologist

ACS Laboratories – Warren Farley

2.3.2 Mud logging



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Mud logging services were not used on this well. Gas was monitored from surface by ACS Laboratories, with a gas monitor fitted to the end of the flow line. The gas data is in Appendix 3. A plot of the data is in Figure 5.

2.3.3 Ditch Cutting Samples

Cuttings were collected at 6 m intervals from the surface to core depth (192 m). The cutting samples and sets were:

Sample Type No. SetsWashed 2

2.3.4 Core Logging

Core logging was undertaken by the well site geologist. The geologist’s logs are in Appendix 3. Also, photographs of the core were taken in the field of each core box, and the photo’s are included in Appendix 5.

Desorption samples were taken throughout the well. The intervals and formations are outlined in Table 4. The results from this testing have been released by the testing contractor (ACS Laboratories) and are included in Appendix 6.

Table 4. Desorption Samples

No. Interval Formation1 224.27 – 225.27metres

Bandanna – Castor Seam2 225.27 – 226.27metres3 237.97 – 238.97 metres

Bandanna – Pollux Seam4 238.97 – 239.97 metres5 240.48 – 241.48 metres

2.3.5 Wireline Logs

Precision ran three suites of logs (see Appendix 3) which are summarised in Table 5.

Table 5 – Wireline Logs Summary

1.1 Gamma 251.40 – 189.50 metres1.1 Neutron 251.40 – 189.50 metres1.1 Caliper 251.40 – 189.50 metres2.1 Resistivity 251.30 – 189.50 metres3.1 Acoustic Scanner 246.40 – 179.20 metres

2.3.6 Temperature Surveys

The maximum temperature recorded was 33oC.



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2.3.7 Drill Stem Tests (DST)

Aussie DST, using packers, completed two drill stem tests. The results from the tests are contained in Appendix 4. Intervals tested were:

DST #1 232.99 – 252.80 metres DST #2 220.01 – 229.03 metres

3.0 GEOLOGY

3.1 Reasons for Drilling

The Permian coal seams of the central and northern Bowen Basin represent a target for coal seam methane (CSM) with several gas fields producing or under development.

The Denison Trough sequence contains the Late Permian Bandanna Formation which is present throughout the region. Coals within this formation belong to the Rangal Coal Measures (an alternative name for the Bandanna Formation) and several seams are mined at outcrop around the flanks of the basin. To the north of ATP 337P, several mines exploit these coals in the Blackwater area. Two other potentially mineable coal resources (Togara South and South Blackwater), delineated by company and government drilling, extend in the subsurface into ATP 337P. The aim of the Phase 2 farm-in work is to provide further gas content and permeability data to help assess the prospects for future CSM production in this area.

One drill stem test was conducted over the coal in Somerby-1. No gas flow occurred but some water influx occurred into the pipe and a permeability of 2.5 to 3mD and skin of 40 is interpreted. Mahalo-1 encountered free gas after penetrating the coal and the mud weight had to be increased. No drill stem test was conducted because of concerns about well control. The Mahalo-2 test well will further determine permeability in the western area, with drill stem tests proposed to be conducted in Humboldt-1 and Mira-1 to help determine permeability in the eastern area.

The only gas content data and adsorption isotherms available in the area were obtained on cores from the Phase 1 farm in wells (Somerby-1 and Mahalo-1). These data indicate that the coals at approx. 200 – 250m depth are gas saturated with average gas contents of 6.3 to 6.6 m3/tonne.

Coal rank is known to increase from west to east across the Comet anticline. Mines in the Blackwater area on the eastern limb are known to have problems with high gas levels. This suggests that coals on the eastern flank of the anticline may have higher gas contents and this will be tested by the Humboldt-1 and Mira-1 core holes.



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3.2 Reservoir

Refer to Appendix 3 for Geologists and Gas Logs.

The Bandanna coals intersected have had limited description. Of the information that is available from the geologists log and the wireline logs, the Castor seam is interpreted and described as being approximately 3 metres in thickness (between 223.96-226.97 metres from the geologists log), containing some 40-60% bright material towards the top of the unit however mostly 60-90% bright material, with conchoidal fractures, common scant oblique cleating and calcite (commonly in

3veins). The Castor seam returned an average total gas content of 5.87 scc/g (m /t),

3and a dry and ash free gas content of 6.52 scc/g (m /t) .

With a total thickness of approximately 3.5 metres the Pollux seam, between 237.97-241.48 metres (geologist’s log), was described as containing 60-90% bright material, having conchoidal fractures, scant oblique cleating and calcite (commonly in veins). The Pollux seam returned an average total gas content of 5.26 scc/g

3 3(m /t), and a dry and ash free gas content of 6.03 scc/g (m /t).

It is interpreted that the Aries seam was not intersected in this well, and does not occur in this locality.

3.3 Stratigraphic Prognosis

The Bandanna Formation coals in the area have gentle dips away from the axis of the Comet anticline, ranging from the southwest on the western flank to southeast on the eastern flank. Some minor faults are seen on seismic data present in the area. The flank areas have a total area of 537 km2 to a depth of -200mSS on the top Castor seam. Good structural control is provided to the southwest by petroleum wells and GSQ core holes on 2km spacing. To the east, only sparse seismic and drilling control exists. Several coal exploration holes, drilled in the South Blackwater exploration lease, provide coal thickness and depth control. Two of these holes (R3008 and R3492) were twinned by the Humboldt-1 and Mira-1 core holes respectively.

The ATP 337P farm-in area is located to the south of the Comet anticline, down flank from the outcrop of the Bandanna Formation coals. Previous coal exploration drilling and petroleum exploration wells (Struan-1) on the south-western flank intersected coals with a cumulative coal thickness of up to 7m in the Castor and Pollux seams. The Phase 1 farm-in core holes (Somerby-1 and Mahalo-1) further defined the section and collected cores for gas content data. These data supported the booking of a low side contingent resource in this area.

The stratigraphy expected in this well is shown in Figure 4. Depth prognoses were carried out with the aid of nearby wells and seismic lines.

Prognosis for Humboldt-1 is outlined below in Table 6.



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Figure 4. Stratigraphy



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Table 6 – Stratigraphy Summary

Formation Predicted Actual Difference

Tertiary Sediments(m RT)

12.36(m RT)

-(m)

-Rewan Formation 29.36 - -Bandanna Formation 202.36 224.00 4.60 (L)

Aries Seam 210.36 - -Castor Seam 223.36 224.00 0.64 (L)Pollux Seam (Upper) 229.36 238.00 8.64 (L)Pollux Seam (Lower) - - -

Total Depth 252.36 252.40 0.04 (L)

3.4 Stratigraphy

Refer to the well site geologists logs in Appendix 3. Also, Table 6 has the formation tops picked from the wireline logs, and difference between what was prognosed.Below is a summary of the stratigraphy from the well site geologist’s logs.

Rewan Formation to 223.96 metresNote that there are no descriptions from surface to 23.8 metres.

Sandstone – rare very fine grained with carbonaceous laminations, occurs with siltstone.Siltstone – occurs with sandstone, shale and claystone. Claystone – occurs with siltstone, shale and sandstone.

Bandanna Formation 223.96 – 252.34 (TD) metresSandstone – very fine grained, towards base of unit drilled, carbonaceous laminations and very fractured, occurs with carbonaceous shale.Siltstone – occurs with claystone and shale (commonly carbonaceous), calcite around coal seams.Claystone –occurs with siltstone and shale (rarely carbonaceous).Shale – carbonaceous (common), occurs with siltstone, coal and claystone, rare carbonaceous laminations, calcite (in veins and around coal seams).Coal – C3 (40-60% bright) and C2 (60-90% bright), scant oblique cleating - rarely with no cleating, conchoidal fracturing and calcite (commonly in veins).

TOTAL DEPTHDriller: 252.8 metresLogger: 252.3 metres

CH4 PlotCH4(%)Depth

2 0

50

1.5

100

1 150

200

0.5

250

0 300

Time

Surface Casing and Cementing



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3.5 Hydrocarbon Shows

Figure 5 highlights the methane gas shows recorded during drilling. Small gas peaks highlight the coal seam intervals. The gas data can be found in Appendix 3.

Figure 5. CH4 Log

4.0 DISCUSSION AND CONCLUSIONS

Humboldt-1 was a successfully drilled shallow CSM Exploration core hole well as part of the Comet Ridge farm-in (in ATP 337P) and has produced valuable data to further evaluate the area as a potential coal seam gas production field. Depth prognosis was performed using nearby wells and seismic data. The prognosed depths were very accurate, with the Castor and Pollux seams intersected within one metres lower and eight metres lower respectively, than what was prognosed.

The target coal seams were intersected and tested, and are within the Bandanna Formations Castor and Pollux coal seams. The well demonstrated that it has gas producing potential with final results presented in Appendix 6. Permeability of the coals was shown through the two drill stem tests.

The well was plugged and abandoned at the completion of the well.

CH

4(

17-

18-

19-

20-

Dep

th



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5.0 REFERENCES

Santos Ltd: Santos Internal Document, Authorisation For Expenditure, ATP 337P Farm-in Phase 2 – Humboldt-1, Mira-1 & Mahalo-2 Well Proposals, Santos – CSG Asset Team, Brisbane, November 2005.

Santos Ltd: Santos Internal Document, Onshore Drilling Australia Core hole Drilling Program Approval, Project Name: Humboldt-1, Mira-1, 23 January 2006

6.0 ACKNOWLODGEMENTS

Assistance from Steve Taylor and Tom Lonergan in the compilation of data for this report is acknowledged.




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APPENDIX 1Daily Drilling

Reports



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GeoConsult Pty Ltd Phone: (07) 3831 6122 Fax: (07) 3831 6133PO Box 1002, Spring Hill, Qld 4004.



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1 Feb 2006 From : Alan GabrielsenTo : Chris Schmickl & Drilling Superintendent

DRILLING MORNING REPORT # 1HUMBOLDT 1

Well DataDrill Co.: Mitchell Drilling Rig: MDC 120Prognosed TD: 248.0mRT-GL: 1.50mGL Elev.: 245.33m

Midnight Depth (MD): 18.0mMidnight Depth (TVD): 18.0mProgress: 18.0mDays From Spud: 0.00Days On Well: 1.00

Current Hole Size: 9.000inCasing O.D.: 6.625inShoe TVD: 17.7mF.I.T. / L.O.T. /Rig Move Distance 37 kilometres

Current Op's @ 0600 17 Feb 2006 : Drill 5-5/8" surface hole from 26m.Planned Operations for 17 Feb 2006 : Drill 5-5/8" surface hole to +/- 190m. Circulate hole clean, pooh, remove riser

and flowline.Summary of Period 0000 to 2400 HrsRig down drilling equipment and load trucks. Move rig, and equipment from Mira 1 to Humboldt 1. Set up rig and equipment. Spot Santos shacks. Drill 7-7/8" conductor hole to 18m (hard area @ 6m). Run 6- 5/8" conductor pipe - would not pass 5 m. Open hole to 9". Set up and run & weld conductor pipe to 18m. Cement in 6-5/8" condutor pipe with 10 sks neat GP cement @ 15 ppg cement. WOC and continue with rigging up.

Operations for Period 0000 Hrs to 2400 Hrs on 16 Feb 2006Phse Cls Op From To Hrs Depth Activity Description

PS P RD 0000 0800 8.00 0.0m Rig down drilling equipment and load trucks.PS P RM 0800 1030 2.50 0.0m Move rig and equipment from Mira 1 to Humboldt 1.PS P RU 1030 1445 4.25 0.0m Set up rig and equipment. Spot Santos shacks.PS P D 1445 1645 2.00 18.0m Drill 7-7/8" conductor hole to 18m (hard area @ 6m).PS TP RC 1645 1700 0.25 18.0m Run 6-5/8" conductor pipe - Would not pass 5 m.PS TP DHO 1700 1900 2.00 18.0m Open hole to 9".PS P RC 1900 2045 1.75 18.0m Set up and run & weld conductor pipe to 18m.PS P CMC 2045 2115 0.50 18.0m Cement 6-5/8" conductor pipe @ 17.7m with 10 sks neat GP

cement @ 15 ppg.PS P WOC 2115 2400 2.75 18.0m WOC. Continue rigging up.


PS RU 0000 0400 4.00 18.0m Complete pre-spud compliance, conduct hazard hunt, Re kit water swivel.

PS TI 0400 0415 0.25 18.0m RIH 5-5/8" BHA.PS SM 0415 0430 0.25 18.0m Hold pre-spud meeting.SH D 0430 0600 1.50 26.0m Spud Humboldt 1 @ 04:30 hrs 17th Feb 2006. Drill 5-5/8"

surface hole to 26m.General Comments

Comments Rig Requirements$ 2000.00 Estimated cost of moving Santos shacks Portaloo on site.Bit # 1 Wear I

1O11

DWT

LA

BX

GI

O2 RTD

Size: 7.875in IADC#: Nozzles Drilled over last 24 hrs Progress: 18.0m On Bottom Time: 1.50h IADC Time: 2.00hTotal Revs:ROP (avg): 12.00 m/hr

Calculated over Bit RunMfr: Not Found WOB (avg): No. Size Cum. Progress: 18.0mType: p RPM (avg): Cum. On Btm Time: 1.50hSerial #: F.Rate: Cum. IADC Time: 2.00hDepth In: 0.0m SPP: Cum. Total Revs: 0Depth Out: 18.0m HSI: Overall ROP (avg): 12.00 m/hrBit MoBdlaedl:e Type bit 7 7/8

TFA: 0.000



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BHA # 1Wt. Below Jars Dry: WTyepieg:ht Dry: Slick

Length:SPticrikn-gUWp Weigehigt:ht:

18.0m Torque (max):

Torque Off Btm:

DC (1) Ann Vel.:

HDWC D(2P)

Ann.VVeel.l:.:HSE Summary Slack-Off Weight: DP Ann. Vel.:

Events Date of Last Days Since Description RemarksPre-Tour Meetings 16 Feb 2006 0 Days Pre tour meeting with

crewDiscussed loading and unloading equipment.Rigging up safely.



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2 Feb 2006 From : Alan GabrielsenTo : Chris Schmickl & Drilling Superintendent





Current Op's @ 0600 18 Feb 2006 : WOC.Planned Operations for 18 Feb 2006 : WOC & MDC crews, slack off casing and nipple up 4" polydrill annular, plumb

in choke line and flare line . Make up HQ corebarrel and pressure test casing and surface equipment to 200 psi low / 700 psi high.

Summary of Period 0000 to 2400 HrsComplete pre-spud compliance, conduct hazard hunt, Re kit water swivel. RIH 5-5/8" BHA. Prespud safety meeting. Spud Humboldt 1 @ 04:30 hrs 17th Feb 2006. Drill 5-5/8" surface hole from 18m-190m.Circulate hole clean & trip out to run surface casing.


PS P RU 0000 0400 4.00 18.0m Complete pre-spud compliance, conduct hazard hunt, Re kit water swivel.

PS P TI 0400 0415 0.25 18.0m RIH 5-5/8" BHA.PS P SM 0415 0430 0.25 18.0m Hold pre-spud meeting.SH P D 0430 0600 1.50 26.0m Spud Humboldt 1 @ 04:30 hrs 17th Feb 2006. Drill 5-5/8"

surface hole to 26m.SH P D 0600 2300 17.00 192.0m Drill 5-5/8" surface hole from 26m-192m.SH P CHC 2300 2330 0.50 192.0m Circulate hole clean.SC P TO 2330 2400 0.50 192.0m Pooh from 192m .


SC TO 0000 0100 1.00 192.0m Pooh from 130m.SC RRC 0100 0130 0.50 192.0m Cut off conductor casing and set up to run 4-1/2" ultra seal

surface casing.SC RC 0130 0345 2.25 192.0m Run 32 jts 4-1/2" ultra seal casing. Circ last joint down.SC HU 0345 0430 0.75 192.0m Make up Screw on CHF and head up cementing head.SC CMC 0430 0445 0.25 192.0m Pump 1 bbl preflush fresh water, PJSM prior to mixing cement.SC CMC 0445 0545 1.00 192.0m Mix and pump 47 sks QCL, GP cement @ 13.8 ppg, 1800 litre, 35%

excess and displace with 1460 litres of water. No cement sighted at surface - returns throughout job.

SC WOC 0545 0600 0.25 192.0m Shut well in. WOC & clean up cementing equipment.Operations for Period Hrs to Hrs onWBM Data Cost Today Cumulative Cost $ 0Mud Type: Spud Viscosity: API FL Loss: Cl Solids:DTiempeth: : 23:00 PYVP: FHiTlteHrPCFaLk:e: KH+a:rd/Ca: HO2il:O:

Weight: 8.40ppg Gels 10s/10m: / HTHP Cake: MBT: Sand:Temp: Fann (3/6/100): / / PF:: Pp HPA:Comment



Phone: (07) 3831 6122 Fax: (07) 3831 6133


Bit # 2 Wear I O1 D L B G O2 R


Calculated over Bit RunMfr: Not Found WOB (avg): No. Size Cum. Progress: 174.0mType: PDC RPM (avg): Cum. On Btm Time: 17.00hSerial #: Unknown F.Rate: Cum. IADC Time: 18.50hDepth In: 18.0m SPP: Cum. Total Revs: 0Depth Out: HSI: Overall ROP (avg): 10.24 m/hrBit Model: 5 5/8" TFA: 0.000BHA # 2Wt. Below Jars Dry: Length: 36.9m Torque (max): DC (1) Ann Vel.: 0fpmWeight Dry: String Weight: Torque On Btm: DC (2) Ann Vel.: 0fpmType: Slick Pick-Up Weight: Torque Off Btm: HWDP Ann. Vel.: 0fpm

Slack-Off Weight: DP Ann. Vel.: 0fpmHSE Summary

Events Date of Last Days Since Description RemarksPre-Tour Meetings 17 Feb 2006 0 Days Pre tour meeting with

crewDiscussed heat stress and the newly implemented water consumption monitoring chart.

Safety Meeting 17 Feb 2006 0 Days pre spud safety meeting

Held pre spud safety meeting with crew. Discussed the wearing of PPE and stepbacks.



Phone: (07) 3831 6122 Fax: (07) 3831 6133

3 Feb 2006 From : Eric GardinerTo : Chris Schmickl & Drilling Superintendent



Midnight Depth (MD): 193.0mMidnight Depth (TVD): 193.0m Progress: 1.0mDays From Spud: 1.81Days On Well: 3.00


Current Op's @ 0600 19 Feb 2006 : Coring ahead @ 201.5 m.Planned Operations for 19 Feb 2006 : Core from 201.5 m to +/- 248 m (TD) retreiving core every 6 m. POOH at TD,

rig up Precision logging equipment and log the well.Summary of Period 0000 to 2400 HrsRun 4-1/2" csg, shoe depth 189.6 mtrs. Cmt in place with poor boy cmt job, 14.6 ppg slurry, top up anuulus cmt twice ok. Slack off at 14:30 hrs and nipple up surface equipment. Pressure test same to 200 psi low and 700 psi high. RIH, tag cement at 172 m, core out cement and 1 m of new hole to 193 m.


SC P TO 0000 0100 1.00 192.0m Pooh from 130m.SC P RRC 0100 0130 0.50 192.0m Cut off conductor casing and set up to run 4-1/2" ultra seal

surface casing.SC P RC 0130 0345 2.25 192.0m Run 32 jts 4-1/2" ultra seal casing. Circ last joint down.SC P HU 0345 0430 0.75 192.0m Make up Screw on CHF and head up cementing head.SC P CMC 0430 0445 0.25 192.0m Pump 1 bbl preflush fresh water, PJSM prior to mixing cement.SC P CMC 0445 0545 1.00 192.0m Mix and pump 47 sks QCL, GP cement @ 13.8 ppg, 1800 litre,

35% excess and displace with 1460 litres of water. No cementsighted at surface - returns throughout job.

SC P WOC 0545 0600 0.25 192.0m Shut well in. WOC & clean up cementing equipment.SC P WOC 0600 1430 8.50 192.0m Wait on cement. Standby with out crews.SC P BOP 1430 1800 3.50 192.0m Rig down cement head and rig up pack off rubber, Choke, Flare

line and flow line. Pressure test Pack off and all surfaceequipment 200 psi low and 700 high.

SC P COR 1800 2030 2.50 192.0m RIH with core barrel and tag cement at 172 m.SC P COR 2030 2330 3.00 192.0m Core cement from 172 m to 192 m.PH P COR 2330 2400 0.50 193.0m Core 3.782" HQ-3 hole from 192 m to 193 m.


PH COR 0000 0600 6.00 246.0m (IN PROGRESS) Core 3.782" HQ-3 hole from 193 m to 246 m, collecting core samples every 6 m. 5 samples taken for gas desorption testing, equivalent to 4.5 m coal.

Operations for Period Hrs to Hrs onWBM Data Cost Today Cumulative Cost $ 0Mud Type: Spud Viscosity: API FL Loss: Cl Solids:DTiempeth: : 23:00 PYVP: FHiTlteHrPCFaLk:e: KH+a:rd/Ca: HO2il:O:

Weight: 8.40ppg Gels 10s/10m: / HTHP Cake: MBT: Sand:Temp: Fann (3/6/100): / / PF:: Pp HPA:Comment



Phone: (07) 3831 6122 Fax: (07) 3831 6133


Bit # 3 Wear I O1 D L B G O2 R


Calculated over Bit RunMfr: OTHER WOB (avg): No. Size Cum. Progress: 1.0mType: Core Head RPM (avg): Cum. On Btm Time: 0.50hSerial #: F.Rate: Cum. IADC Time: 0.50hDepth In: 192.0m SPP: Cum. Total Revs: 0Depth Out: HSI: Overall ROP (avg): 2.00 m/hrBit MoLdoenlg: year surface st

TFA: 0.000

BHA # 3Wt. Below Jars Dry: Length: 7.2m Torque (max): DC (1) Ann Vel.: 0fpmWeight Dry: String Weight: Torque On Btm: DC (2) Ann Vel.: 0fpmType: coring Pick-Up Weight: Torque Off Btm: HWDP Ann. Vel.: 0fpm

Slack-Off Weight: DP Ann. Vel.: 0fpmHSE Summary

Events Date of Last Days Since Description RemarksHazard 16 Feb 2006 2 Days IMS 5174 loose

shelvingHazard 16 Feb 2006 2 Days IMS 5145 broken

windowLTI/MTI incident free days

09 Feb 2006 9 Days Start new project Started new drilling campaign with Santos on 9-2-06.

Pre-Tour Meetings 18 Feb 2006 0 Days Breathaliser Crew breath tested prior to going on tour at 10pm one crew member unfit for work. Rig manager will fill in for terminated employee until new crew member arrives

Pre-Tour Meetings 18 Feb 2006 0 Days Pre tour meeting with crew

Discuss todays activities, cementing, nippling up, pressure testing and coring

PTW issued 18 Feb 2006 0 Days PTW Pressure test permit issued for testing Pack of rubber and surface equipment



Phone: (07) 3831 6122 Fax: (07) 3831 6133






Current Op's @ 0600 20 Feb 2006 : Rig up E-line loggers, TD 252 m.Planned Operations for 20 Feb 2006 : Drill to 252 m, 10 m below last coal. POOH for logging, rig up E-line loggers

and log well.Rig out loggers and conduct wiper trip depending on results of logs.

Summary of Period 0000 to 2400 HrsCore from 193 m to 246 m collecting core samples every 6 m. 5 samples taken for gas desorption testing, equivalent to4.5 m coal.


PH P COR 0000 2400 24.00 246.0m Core 3.782" HQ-3 hole from 193 m to 246 m, collecting core samples every 6 m. 5 samples taken for gas desorption testing, equivalent to 4.5 m coal.


PH COR 0000 0330 3.50 252.8m Core 3.782" HQ-3 hole from 246 m to 252.8 m.PH CMD 0330 0400 0.50 252.8m Circulate hole clean for 30 mins.EP TO 0400 0500 1.00 252.8m POOH for logging.EP RU 0500 0600 1.00 252.8m (IN PROGRESS) Rig out rod trailer and rig up logging truck.

Operations for Period Hrs to Hrs on

Slack-Off Weight: DP Ann. Vel.:

WBM Data Cost Today Cumulative Cost $ 0Mud Type: SpudDTiempeth: : 23:00Weight: 8.40ppg Temp:

Viscosity:PYVP:Gels 10s/10m: /Fann (3/6/100): / /

API FL Loss: F

HiTlteHrPCFaLk:e: HTHP Cake:

Cl K

H+a:rd/Ca: MBT:

PF::

Solids: H

O2il:O:

Sand:

Pp HPA:CommentBit # 3 Wear I O1 D L B G O2 R

Size: 3.782inMfr: OTHERType: Core Head Serial #:Depth In: 192.0m Depth Out:Bit MoLdoenlg: year surface st

IADC#:WOB (avg):RPM (avg): F.Rate:SPP:HSI:TFA: 0.000

Nozzles Drilled over last 24 hrs Progress: 53.0m On Bottom Time: 19.00h IADC Time: 24.00hTotal Revs:ROP (avg): 2.79 m/hr

Calculated over Bit Run Cum. Progress: 54.0m Cum. On Btm Time: 19.50h Cum. IADC Time: 24.50h Cum. Total Revs: 0Overall ROP (avg): 2.77 m/hr

No. Size

BHA # 3Wt. Below Jars Dry: Length: 7.2m Torque (max): DC (1) Ann Vel.:



Phone: (07) 3831 6122 Fax: (07) 3831 6133


HSE SummaryEvents Date of Last Days Since Description Remarks

Hazard 19 Feb 2006 0 Days Unsecured shelving IMS report on unsecured shelving in spares trailer. Came adrift from wall on rig move has been resecured to wall with temperary fix. Have ordered wall mounting brackets

Hazard 19 Feb 2006 0 Days CFS for the weekLTI/MTI incident free days


Safety Meeting 19 Feb 2006 0 Days pre tour safety meetings

Discuss todays operations coring and retriving core samples. talked about keeping close eye on swabbing and keeping hole full.

Safety Meeting 19 Feb 2006 0 Days Weekly Discussed fittness for work, Santos drug and alchol policy.Hazards with driving to and from work site. several Hot and humid days in a row.



Phone: (07) 3831 6122 Fax: (07) 3831 6133






Current Op's @ 0600 21 Feb 2006 : Conducting DST #1.Planned Operations for 21 Feb 2006 : Wait on daylight and conduct DST#1. Initial open 10mins, initial shut in

30mins, final open 30mins & final shut in 90 mins. Unseat packer and reverse circulate well to flare pit. check that well is not flowing and POOH laying out rods and DST tools. Pick up cementing string and RIH to TD. Mix first cmt batch and fill hole with 14.5ppg slurry. POOH 20 jnts and wait on cmt tag cmt to ensure shoe is covered. POOH and put 30 mtr balance plug at surface. Rig out BOPs and cut off csg. Weld on well sign with spud date and TD. Rig release.

Summary of Period 0000 to 2400 HrsCore well to 252 m (TD) at 03:30 hrs, circulate and POOH Rig up and Log the well with 3 runs from 189 to 253 m. No hole problems encounted through out the job. POOH and rig out logging truck at 15:00 hrs. Wait on test interval. Make up Test tools and RIH to shoe. Wait until 04:30 hrs and continue to RIH for daylight test.


PH P COR 0000 0330 3.50 252.8m Core 3.782" HQ-3 hole from 246 m to 252.8 m.PH P CMD 0330 0400 0.50 252.8m Circulate hole clean for 30 mins.EP P TO 0400 0500 1.00 252.8m POOH for logging.EP P RU 0500 0630 1.50 252.8m Rig out rod trailer and rig up logging truck.EP P LOG 0630 1430 8.00 252.8m Conduct pre job safety meeting with crew and issue permit for

doing the job. Make up logging tools and RIH. Run #1:MCG-MON-MPD, 07:00 to 09:00 hrs; Run #2 DLS-MLL, 09:00 to11:30 hrs; Run #3: SAST, 11:30 to 13:45 hrs. POOH and rig down.

EP U WO 1430 1700 2.50 252.8m Wait on DST interval.EP P DST 1700 1900 2.00 252.8m Make up DST tools and RIH to shoe - 50 m water cushion

placed in pipe. Test interval is 233 ms to 252 m.EP P WOD 1900 2400 5.00 252.8m Wait until 04:30 hrs to continue to RIH and rig up to test.


EP WOD 0000 0430 4.50 252.8m Wait for daylight to Continue to RIH and rig up to carry out DST #1.

EP DST 0430 0515 0.75 252.8m Continue to RIH with rod string. Make up test head and set Packer

EP DST 0515 0600 0.75 252.8m (IN PROGRESS) Conduct DST #1. Open Tool at 5:26 hrs for 10 mins, no bubble. Shut tool in at 5:36 hrs. Shut in time 30 mins, Open for 30mins bubble to surface after 5 mins after 12min strong bubble to btm of bucket. Shut well in for 90 mins.

Operations for Period Hrs to Hrs onGeneral Comments

Comments Rig RequirementsPercision energy services logging dkt #2788, AUD 27,503.



Phone: (07) 3831 6122 Fax: (07) 3831 6133


WBM Data Cost Today Cumulative Cost $ 0Mud Type: Spud Viscosity: API FL Loss: Cl Solids:DTiempeth: : 23:00 PYVP: FHiTlteHrPCFaLk:e: KH+a:rd/Ca: HO2il:O:

Weight: 8.40ppg Gels 10s/10m: / HTHP Cake: MBT: Sand:Temp: Fann (3/6/100): / / PF:: Pp HPA:CommentBit # 3 Wear I

1O11

DRR

LA

BX

GI

O2RR

RTD


Calculated over Bit RunMfr: OTHER WOB (avg): No. Size Cum. Progress: 60.8mType: Core Head RPM (avg): Cum. On Btm Time: 23.00hSerial #: F.Rate: Cum. IADC Time: 28.00hDepth In: 192.0m SPP: Cum. Total Revs: 0Depth Out: 252.8m HSI: Overall ROP (avg): 2.64 m/hrBit MoLdoenlg: year surface st

TFA: 0.000

BHA # 3Wt. Below Jars Dry: Length: 7.2m Torque (max): DC (1) Ann Vel.: 0fpmWeight Dry: String Weight: Torque On Btm: DC (2) Ann Vel.: 0fpmType: coring Pick-Up Weight: Torque Off Btm: HWDP Ann. Vel.: 0fpm

Slack-Off Weight: DP Ann. Vel.: 0fpmBHA # 4Wt. Below Jars Dry:WTyepieg:ht Dry: DST #1


34.0m Torque (max):

Torque Off Btm:

DC (1) Ann Vel.:

HDWC D(2P)

Ann.VVeel.l:.:

HSE Summary Slack-Off Weight: DP Ann. Vel.:

Events Date of Last Days Since Description RemarksLTI/MTI incident free days


PTW issued 20 Feb 2006 0 Days Explosive/radioactive permit

PTW # 1360 issued to Percision for logging well

Safety Meeting 20 Feb 2006 0 Days pre tour safety meetings

Discuss todays operations coring and retriving core samples. Tripping pipe and logging the well. possible DST



Phone: (07) 3831 6122 Fax: (07) 3831 6133




Phone: (07) 3831 6122 Fax: (07) 3831 6133






Current Op's @ 0600 22 Feb 2006 : Wait on cement.Planned Operations for 22 Feb 2006 : Tag plug at shoe and pressure test. POOH & set top plug at 60 m. POOH and

top up casing, install well head sign and release rig.Summary of Period 0000 to 2400 HrsWait on daylight and conduct DST #1. POOH and RIH with DST #2. POOH and RIH with cementing pipe to P&A. pump Plug #1 and wait on cement prior to tagging.


EP P WOD 0000 0430 4.50 252.8m Wait for daylight to Continue to RIH and rig up to carry out DST#1.

EP P DST 0430 0515 0.75 252.8m Continue to RIH with rod string. Make up test head and setPacker

EP P DST 0515 0800 2.75 252.8m Conduct DST #1. Open Tool at 5:26 hrs for 10 mins, no bubble.Shut tool in at 5:36 hrs. Shut in time 30 mins, Open for 30minsbubble to surface after 5 mins after 12min strong bubble to btmof bucket. Shut well in for 90 mins.

EP P CIR 0800 0830 0.50 252.8m Drop bar and reverse circulate well to 8.4 drill fluid.EP P TO 0830 1030 2.00 252.8m POOH and lay out DST toolsEP P DST 1030 1200 1.50 252.8m Down load gauges and email results to town and wait on ordersEP P DST 1200 1430 2.50 252.8m Make up new DST BHA to DST interval 220 to 229mtrs. RIH and

fill rods with 50 mtr water cushion on the way in the hole.EP P DST 1430 1730 3.00 252.8m Make up test head and set packer Open tool at 14:40 hrs for 10

mins, no bubble to surface. Shut in for 30mins. Open tool at15:20 hrs for 30 mins, no bubble to surface. Shut tool in at 15:50hrs for 90 mins.

EP P DST 1730 1800 0.50 252.8m Drop bar and Reverse circulate.EP P DST 1800 1930 1.50 252.8m POOH laying out DST tools.PA P TI 1930 2100 1.50 252.8m Rig out Coring string. Rig in cementing string and RIH with

same.PA P CMP 2100 2230 1.50 252.8m Tag btm pick up a meter and make up 110 mtr 14.2ppg cement

slurry. Pump balance plug, pull 25 x 6 meter rods and reversecirculate. Top of plug should be 47 meter inside casing.

PA P WOC 2230 2400 1.50 252.8m Wait on cement prior to tagging.Operations for Period 0000 Hrs to 0600 Hrs on 22 Feb 2006

Phse Cls Op From To Hrs Depth Activity DescriptionPA WOC 0000 0600 6.00 252.8m (IN PROGRESS) Wait on cement to set before tagging. Check

sample every hour from 03:00 hrs.General Comments

Comments Rig Requirements2 x DST's: AUD 25,754 - Aussie DST.1 Load of Camp water 4 hrs x 4 hr (Delivered by Doug Weir will be using Steve flower to back charge to Santos)

Rig operating 1 man down since Saturday, Rig manager has been filling in Nights as well as trying to organise the daily running of the rig. Replacement of sider due in22-2-2006.



Phone: (07) 3831 6122 Fax: (07) 3831 6133


BHA # 5Wt. Below Jars Dry: WTyepieg:ht Dry: DST #2


40.0m Torque (max):

Torque Off Btm:

DC (1) Ann Vel.:

HDWC D(2P)

Ann.VVeel.l:.:BHA # 4 Slack-Off Weight: DP Ann. Vel.:

Wt. Below Jars Dry: WTyepieg:ht Dry: DST


34.0m Torque (max):

Torque Off Btm:

DC (1) Ann Vel.:

HDWC D(2P)

Ann.VVeel.l:.:HSE Summary Slack-Off Weight: DP Ann. Vel.:

Events Date of Last Days Since Description RemarksLTI/MTI incident free days


PTW issued 21 Feb 2006 0 Days Pressure permit PTW # 1361 to Aussie DST for 2 DSTSafety Meeting 21 Feb 2006 0 Days pre tour safety

meetingsDiscuss todays operations DSTs and P&A procedures.



Phone: (07) 3831 6122 Fax: (07) 3831 6133



Well DataDrill Co.: Rig:Prognosed TD: RT-GL:GL Elev.:

Mitchell DrillingMDC 120

248.0m1.50m

245.33m

Midnight Depth (MD): Midnight Depth (TVD): Progress:Days From Spud:Days On Well:

252.8m252.8m

0.0m5.256.44

Current Hole Size: Casing O.D.: Shoe TVD:F.I.T. / L.O.T.Rig Move Distance

3.782in4.500in189.6m

/ 37 kilometres

Current Op's @ 0600 23 Feb 2006 :Planned Operations for 23 Feb 2006 :Summary of Period 0000 to 2400 HrsTag plug at shoe and pressure test. POOH, set top plug at 60 m, POOH and top up casing install well head sign. Rig Released at 10:30 hrs.


PA P WOC 0000 0630 6.50 252.8m Wait on cement to set before tagging. Check sample every hour from 03:00 hrs.

PA P CMP 0630 1030 4.00 252.8m Tag cement at 159.5 m and pressure tested to 600 psi - OK. POOH, rig down pack off rubber, flow line and unscrew flange. RIH with cement string to 60 m and pump 60 m 14.2 ppg cement slurry. POOH with rods and flush same. Install well P&A sign.Rig released at 10:30 hrs.

HSE SummaryEvents Date of Last Days Since Description Remarks

LTI/MTI incident free days


PTW issued 21 Feb 2006 1 Day Pressure permit PTW # 1361 to Aussie DST for 2 DSTSafety Meeting 21 Feb 2006 1 Day pre tour safety

meetingsDiscuss todays operations DSTs and P&A procedures.

A.B.N. 80 007 550 923

WELL PROGRESS REPORT

HUMBOLDT No 1



Phone: (07) 3831 6122 Fax: (07) 3831 6133

PAGE 1

DEPTH: 35.8 M PROGRESS: 12.0 M DAYS FROM SPUD: 1

OPERATION: DRILLING

NOPE COST (P&A FINAL FORECAST COST (P&A)$ COST TO DATE(C&S (C&S)$

CASING DEPTH: 4 1/2 “ RIG: MDC 120

PROGRAMMED TD: 247 M ROTARY TABLE: GROUND LEVEL: 245 M

MUD DATA Type: Wt: Visc: WL: pH: K +: Cl -: PV/YP: Rmf:(2400 Hours)

No. Make Type Size Hours Footage ConditionBIT DATA PRESENT

LAST

SURVEYS: MD INCLINATION AZIMUTH (T) MD INCLINATION AZIMUTH (T)

PREVIOUS 24 HOURS OPERATIONS: Drilling top hole, run and set conductor pipe. Drill out cement and commence drilling, Well spudded 0430 hrs 17/02/06.

ANTICIPATED OPERATIONS : Drilling onto approx 190 M and setting 41/2” casing.

A.B.N. 80 007 550 923


HUMBOLDT No 1



Phone: (07) 3831 6122 Fax: (07) 3831 6133

PAGE 1


OPERATION: WAITING ON CEMENT AFTER RUNNING 4 ½” CASING

NOPE COST (P&A FINAL FORECAST COST (P&A)$287,000 COST TO DATE(C&S (C&S)$

CASING DEPTH: 4 1/2 “ @ m 190m RIG: MDC 120




LAST


PREVIOUS 24 HOURS OPERATIONS:

DRILLING FROM 35.8M TO 191.8M, POOH AND RUN IN 4 1/2" CASING & CEMENT. WAITING ON CEMENT

ANTICIPATED OPERATIONS :

CORING TO COMMENCE.

A.B.N. 80 007 550 923


HUMBOLDT No 1



Phone: (07) 3831 6122 Fax: (07) 3831 6133

PAGE 1

DEPTH: 204.8 M PROGRESS: 13 M DAYS FROM SPUD: 3

OPERATION: CUTTING CONTINUOUS CORE






LAST


PREVIOUS 24 HOURS OPERATIONS:

DRILL OUT CEMENT AND COMMENCE CORING AT 191.55 M


CONTINUE CORING

A.B.N. 80 007 550 923


HUMBOLDT No 1



Phone: (07) 3831 6122 Fax: (07) 3831 6133

PAGE 1


OPERATION: PREPARING TO RUN WIRLINE LOGS.






LAST


PREVIOUS 24 HOURS OPERATIONS:CORING HQ3 HOLE, TOTAL OF 5 DESORB COAL SAMPLES TAKEN FROM – D#1 224.27M, D#2 237.97M, D#3 237.97M, D#4 238.97M & D#5 240.48M. ALL SAMPLES ONE METER IN LENGTH. CORED TO TD @ 252.34M AT0330, POOH AND RIG UP FOR LOGGING.


RUN E LOGS




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APPENDIX 2Wireline Logs



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APPENDIX 3Geologists Logs



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Phone: (07) 3831 6122 Fax: (07) 3831 6133

Well NameDepth Top mKB

Depth Base mKB

Type (Core /Cutting)

Core Lost Sandstone % Siltstone % Shale % Mudstone/Claystone % Coal % Slickenside Fracture Cleating Cleats Cleat angle

HUMBOLDT #1 23.8 35.8 Cutting Claystone35.8 71.8 Cutting Siltstone 20 Claystone 8071.8 117.8 Cutting Siltstone 50 Claystone 50

117.8 191.8 Cutting Siltstone 80 Claystone 20191.55 191.75 Core Siltstone 20 Claystone 80191.75 192.12 Core Sandstone 80 Siltstone 20192.12 194.94 Core Claystone 100194.94 195.12 Core Siltstone 100195.12 199.52 Core Siltstone 10 Claystone 90199.52 199.82 Core Sandstone 50 Siltstone 50199.82 200.73 Core Siltstone 10 Claystone 90200.73 202.53 Core Siltstone 20 Claystone 80202.53 205.13 Core Claystone 100205.13 205.76 Core Siltstone 40 Shale 10 Claystone 50205.76 207.61 Core Claystone 100207.61 219.18 Core Siltstone 40 Shale 10 Claystone 50219.18 219.57 Core Sandstone v fn grn 100219.57 223.96 Core Siltstone 40 Shale 10 Claystone 50223.96 224.27 Core Shale, carbonac 50 Coal, 40-60% 50 Chonchoidal No224.27 225.27 Core Shale, carbonac 20 Coal, 60-90% b 80 Chonchoidal Yes Scant225.27 225.97 Core Shale 100 Yes225.97 226.97 Core Shale, carbonac 40 Coal, 60-90% b 60 Chonchoidal Yes Scant226.97 234.8 Core Siltstone 40 Shale 20 Claystone 40234.8 235.58 Core Shale 100

235.58 237.15 Core Siltstone 40 Shale 20 Claystone 40237.15 237.62 Core Siltstone 10 Shale 90237.62 237.97 Core Shale, carbonac 100237.97 238.97 Core Shale, carbonac 20 Coal, 60-90% b 80 Chonchoidal Yes Scant238.97 239.97 Core Shale, carbonac 20 Coal, 60-90% b 80 Chonchoidal Yes Scant239.97 240.48 Core Shale 100240.48 241.48 Core Shale, carbonac 20 Coal, 60-90% b 80 Chonchoidal Yes Scant

241.48242.79 Core Siltstone 40 Shale, carbonac 20 Claystone 40242.79243.42 Core Sandstone v fn grn

Carb lams & v frac243.42 244.18 Core Shale 100244.18 246.31 Core Siltstone 45 Shale 10 Claystone 45246.31 249.36 Core Shale 100249.36 249.85 Core Siltstone 50 Claystone 50249.85 250.56 Core Sandstone v fn grn 90 Shale, carbonac 10250.56 252.34 Siltstone 10 Shale 90252.34 TD




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APPENDIX 4

Drill Stem Tests



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Company: Santos LimitedWell Name: HUMBOLT#1

Well Location: 0State: QldDate: 20/02/2006 Ticket #: t0820

Test Type: Conventional - Bottom Hole TD: 252.8Formation: BASE POLLUX RT Elev: 245.94

Interval: 232.99 - 252.80m GL Elev: 245.33DST #: 1 Tester: R BABYAK

RECORDER DATA:

Rec #: Range (psi): Battery S/N:

Depth (m):

Initial Hydrostatic: Initial Preflow: Final Preflow: Initial Shutin:

Initial Flow: Final Flow:

Final Shutin:Final Hydrostatic:

Inside / Outside:

TIME DATA:

Preflow: Initial Shutin:

Initial Flow: Final Shutin:

10303090

mins mins mins mins

Time Start Time End5:26 5:365:36 6:066:06 6:366:36 8:06

(24 hour time)

Pick Up Tools:RIH Pipe: On Depth:

Open Tools: Time Pulled:

Drop Bar: POOH Pipe:

L/O Tools:Finish L/O Tools:

17:3018:155:005:268:068:108:409:50

10:30

TOOL DATA:

Tool Weight: 27 000 lb Drill Pipe 1:OD (in) ID (in)

3 224Length (m) Cap. (bbls/ft)

213.00 48.7399Weight Set on Packers: Not Indicated lb Drill Pipe 2: - 0 - 0.0000

Weight Pulled Free: 260 000 lb HW Drill Pipe 1: 0 0 0.00 0.0000Initial String Weight: 137 000 lb HW Drill Pipe 2: - - - -

Hole Size: 2-1/8 in Drill Collars 1: 0 0 0.00 0.0000Bottom Hole Choke: 1/2 in Drill Collars 2: - - - -

Page 1

6892 6890 6891 688610k 10k 10k

M15672 T15233 M15689226.27 230.47 237.86

PSI PSI PSI PSI328.77 333.0578.42 82.7891.96 96.39307.60 309.6593.06 97.57126.29 130.43

118.05 308.03 330.73346.13 351.76

Fluid Inside Outside Below



Phone: (07) 3831 6122 Fax: (07) 3831 6133

FLUID RECOVERY: MUD DATA:

(m) of FORMATION WATER Mud Type: WATER(m) of 0 Weight: 8.4 ppg(m) of 0 Viscosity: 32 sec(m) of 0 W.L. N/A cc/30min

F.C. 2 /32"Total Fluid: N/A Mud Drop: Annulus Static

2 FLUID SAMPLES TAKEN Flowed: 0.5 bbls

BLOW DESCRIPTION AND REMARKS:

Preflow: NO BLOW ON PREFLOW

Second Flow: WEAK BUBBLES IN 5 MIN INCREASING TI GOOD IN 12 MIN REMANING THROUGHOUT NO GAS TO SURFACE

SAMPLE CHAMBER RECOVERY: SURFACE CHOKE SIZE: 0.25 in

Comments:

GENERAL DATA:

Number of Packers: 1 Packer S/N: xxx Packer S/N: xxxPacker Size: 3-1/2" x 30" Location: Bottom Location:

Condition OOH: Rerunable Condition OOH:

Prior operations: Wiper Trip Cushion Amount (m): 5 BHT (oF): 0Wiper Trip Performed: Yes Cushion Type: N/A Company Rep: E. Gardiner

Amount of Fill (m): N/A Reversed Out: Yes Contractor: Mitchell DrillingHole Condition: Good Tool Chased: Yes Rig Number: 140

GENERAL TEST COMMENTS:

Page 2

Flow

Rat

e (m

msc

f/day

)WELL COMPLETION REPORT Humboldt-1


Phone: (07) 3831 6122 Fax: (07) 3831 6133

GAS FLOW RATES:

TIME CHOKE psi mmscf/d TIME CHOKE psi mmscf/d0:00 0 0 #N/A0:00 0 0 #N/A

Flow Rate

1.000.900.800.700.600.500.400.300.200.100.00

0:00 4:48 9:36 14:24 19:12 0:00

Time

Page 3



Phone: (07) 3831 6122 Fax: (07) 3831 6133

WELL COMPLETION REPORT Humboldt-1Start Test Date: 2006/02/20

350

HUMBOLDT 1DST#1FLUID

HUMBOLDT 1 DST#1FLUID

105

300 102

250 99

FSI 118.05

200 96TEMP 90.56deg F

150 93

100 90

50 87

0 84

Gauge 1

Gau

ge 1

Pre

ssur

e


-50 81

0 2 4 6 8 10 12 14 16 18Gauge 1 Time , hr


C:\WeatherfordWMG\Data\HUMBOLDT 1 DST#1 FLUID 21-Feb-06 Ver 2.384


400

HUMBOLDT 1 DST#1 OUTSIDE HUMBOLDT 1 DST#1 OUTSIDE

100

350 98

IHP 333.05ISI 309.65 FHP 351.76

300 FSI 330.73 96

250 TEMP 90.92deg F 94

200 92

150 90

FFP 130.43

100

IPF 82.78 IFP 97.5788

FPF 96.39

50 86

0 84

Gauge 1

Gau

ge 1

Pre

ssur

e

WELL COMPLETION REPORT Humboldt-1-50

82

0 2 4 6 8 10 12 14 16 18Gauge 1 Time , hr

C:\WeatherfordWMG\Data\HUMBOLDT 1 DST#1 OUTSIDE 21-Feb-06 Ver 2.384

WELL COMPLETION REPORT Humboldt-1SANTOS 10/0-0--0W/Start Test Date: 2006/02/21

400

HUMBOLDT DST#1INSIDE

HUMBOLDT DST#1INSIDEJob Number: 1

100

IHP 328.77 ISI 307.60 FSI 308.03

300 95

200 90

TEMP 89.9 deg F

FFP 126.29

100IPF 78.42

IFP 93.06

85

FPF 91.96

0 80

Gauge 1

Gau

ge 1

Pre

ssur

e

FHP


75

0 2 4 6 8 10 12 14 16Gauge 1 Time , hr

C:\WeatherfordWMG\Data\HUMBOLDT 1 DST# INSIDE 21-Feb-06 Ver 2.384



Phone: (07) 3831 6122 Fax: (07) 3831 6133

Company: Santos LimitedWell Name: HUMBOLDT 1

Well Location: 0State: QldDate: 21/02/2006 Ticket #: 821

Test Type: Conventional - Straddle (Blank Off) TD: 252.80mFormation: CASTOR RT Elev: 245.94

Interval: 220.01 - 229.03m GL Elev: 245.33DST #: 252.8 #2 Tester: R. Babyak

RECORDER DATA:

Rec #: Range (psi): Battery S/N:

Depth (m):

Initial Hydrostatic: Initial Preflow: Final Preflow: Initial Shutin:

Initial Flow: Final Flow:

Final Shutin:Final Hydrostatic:

Inside / Outside:

TIME DATA:

Preflow: Initial Shutin:

Initial Flow: Final Shutin:

10303090

mins mins mins mins

Time Start Time End14:40 14:5014:50 15:2015:20 15:5015:50 17:20

(24 hour time)

Pick Up Tools:RIH Pipe: On Depth:

Open Tools: Time Pulled:

Drop Bar: POOH Pipe:

L/O Tools:Finish L/O Tools:

12:0013:1514:3014:4017:2017:3018:0019:3020:00

TOOL DATA:

Tool Weight: 2 000 lb Drill Pipe 1:OD (in)

3ID (in)

-Length (m) Cap. (bbls/ft)

216.00 -Weight Set on Packers: 2 000 lb Drill Pipe 2: - - - -

Weight Pulled Free: N/A lb HW Drill Pipe 1: - - - -Initial String Weight: N/A lb HW Drill Pipe 2: - - - -

Hole Size: 3-3/4 in Drill Collars 1: - - - -Bottom Hole Choke: 1/2 in Drill Collars 2: - - - -

Page 1

6892 6890 6938 689110k 10k 10k 10k

15689 T15233 M16201 M15689213.29 217.49 223.18 230.00PSIG PSIG PSIG PSIG

308.25 311.56 326.5175.86 76.7179.80 81.93291.19 292.4880.19 81.7296.38 97.61

90.24 290.98 291.81378.82 378.95 325.03

Fluid Inside Outside Below



Phone: (07) 3831 6122 Fax: (07) 3831 6133

FLUID RECOVERY:

(m) of

MUD DATA:

Mud Type: WATER(m) of Weight: 8.4 ppg(m) of Viscosity: 32 sec(m) of W.L. cc/30min

F.C. /32"Mud Drop: N/A

Flowed: bbls

BLOW DESCRIPTION AND REMARKS:

Preflow: NO BLOW ON PREFLOW

Second Flow: NO BLOW ON FINAL FLOW

SAMPLE CHAMBER RECOVERY:

Comments:

SURFACE CHOKE SIZE: in

GENERAL DATA:

Number of Packers: 2Packer Size:

Packer S/N: Location: Top

Condition OOH: Rerunable

Packer S/N:Location: Bottom

Condition OOH: Rerunable

Prior operations: DSTWiper Trip Performed: No

Amount of Fill (m): N/AHole Condition: Excellent

Cushion Amount (m): 50m Cushion Type: Water Reversed Out: Yes

Tool Chased: No

BHT (oF):Company Rep: RIC GARDNER

Contractor: Mitchell Drilling Rig Number: 120

GENERAL TEST COMMENTS:

Page 2

Flow

Rat

e (m

msc

f/day

)WELL COMPLETION REPORT Humboldt-1


Phone: (07) 3831 6122 Fax: (07) 3831 6133

GAS FLOW RATES:

TIME CHOKE psi mmscf/d TIME CHOKE psi mmscf/d

Flow Rate

1.000.900.800.700.600.500.400.300.200.100.00

0:00 4:48 9:36 14:24 19:12 0:00 4:48

Time

Page 3



Phone: (07) 3831 6122 Fax: (07) 3831 6133


350

HUMBOLDT 1DST#2FLUID

HUMBOLDT 1 DST#2FLUID

115

300 110

250 105

200 100

150 95

FSI 90.24100 90

50 85

0 80

Gauge 1

Gau

ge 1

Pre

ssur

e


-50 75

0 1 2 3 4 5 6 7Gauge 1 Time , hr

C:\WeatherfordWMG\Data\HUMBOLDT 1 DST#2 FLUID 21-Feb-06 Ver 2.384

IHP FHP


500

HUMBOLDT 1 DST#2OUTSIDE HUMBOLDT 1 DST#2OUTSIDE

106

TEMP 88.94degF

400 101

300 96

200 91

100

IPF 76.71

FPF 81.93 IFP 81.72

86FFP 97.61

0 81

Gauge 1 G

auge

1 P

ress

ure

ISI FSI


76

0 1 2 3 4 5 6 7Gauge 1 Time , hr

C:\WeatherfordWMG\Data\HUMBOLDT 1 DST#2 OUTSIDE 21-Feb-06 Ver 2.384


500

HUMBOLDT 1DST#2INSIDE

HUMBOLDT 1 DST#2INSIDE

105

400 TEMP 88.18deg F 100

300 95FSI 290.98

200 90

100 IPF 75.86

FPF 79.80 IFP80.19

85FFP 96.38

0 80

Gauge 1

Gau

ge 1

Pre

ssur

e

IHP ISI FHP


75

0 1 2 3 4 5 6 7Gauge 1 Time , hr

C:\WeatherfordWMG\Data\HUMBOLDT 1 DST#2 INSIDE 21-Feb-06 Ver 2.384

IHP


500

HUMBOLDT 1 DST#2BELOW HUMBOLDT 1 DST#2BELOW

100

400 95FHP 325.03

300 90

200 85

100 80

0 75

- 100

Gauge 1 G

auge

1 P

ress

ure

WELL COMPLETION REPORT Humboldt-102468Gauge 1 Time ,

hr



Phone: (07) 3831 6122 Fax: (07) 3831 6133

C:\WeatherfordWMG\Data\HUMBOLDT 1 DST#2 BELOW 21-Feb-06 Ver 2.384




Phone: (07) 3831 6122 Fax: (07) 3831 6133

APPENDIX 5Core

Photographs



Phone: (07) 3831 6122 Fax: (07) 3831 6133





Phone: (07) 3831 6122 Fax: (07) 3831 6133

APPENDIX 6

ACS Laboratories CBM Report

GeoConsult Pty Ltd Phone: (07) 3831 6122 Fax: (07) 3831 6133



Phone: (07) 3831 6122 Fax: (07) 3831 6133

PO Box 1002, Spring Hill, Qld 4004.

LABORATORIESPTY LTD



Phone: (07) 3831 6122 Fax: (07) 3831 6133

A C S

COAL BED METHANE ANALYSIS FINAL REPORT

of

HUMBOLDT-1

for

SANTOS LIMITED

by

ACS LABORATORIES PTY LTD

LABORATORIESPTY LTD



Phone: (07) 3831 6122 Fax: (07) 3831 6133

A C S

11 September 2006

Santos LimitedLevel 14 Santos House, 60 Edward Street,Brisbane Qld 4000

Attention: Steve Taylor

COAL BED METHANE ANALYSIS - FINAL REPORT 0871-06

HUMBOLDT-1

Please find enclosed final results of the coal bed methane study for the samples taken from the above well.

If ACS can assist you in any way, or if you require any further information, please do not hesitate to contact the undersigned.

NICK COXOperations Manager

ACS Laboratories Pty. Ltd. shall not be liable or responsible for any loss, cost, damages or expenses incurred by the client, or any other person or company, resulting from any information or interpretation given in this report. In no case shall ACS Laboratories Pty. Ltd. be responsible for consequential damages including, but not limited to, lost profits, damages for failure to meet deadlines and lost production arising from this report.

Head 8 Cox Road, Windsor Qld 4030, Australia ACS Laboratories Pty LtdOffice: : 61 7 3357 1133 Facsimile: 61 7 3357 1100 ABN: 81 008 273 005

E-mail: [email protected]



Phone: (07) 3831 6122 Fax: (07) 3831 6133

CONTENTS

CHAPTERS Page

SUMMARY

1. DESCRIPTION OF EXPERIMENTS

1.1 Gas Content by Seam Temperature Desorption..............................................7

1.2 Compositional Analysis of Gas......................................................................9

1.3 Proximate Analysis.........................................................................................9

1.4 Dry and Ash Free Normalisation of Gas Content.........................................10

1.5 Calculation of Desorption Coefficient..........................................................10

1.6 Adsorption Isotherm.....................................................................................11

1.7 Maceral Analyses..........................................................................................13

1.8 Compositional Analysis of Recovered Water...............................................13

2. GAS DESORPTION RESULTS.............................................................................14

3. MACERAL ANALYSES.........................................................................................20

4. ADSORPTION ISOTHERMS................................................................................23

5. COMPOSITION OF RECOVERED WATER (DST#1)......................................25

6. CORE SAMPLING TIMESHEET.........................................................................28

0871-06 Humboldt-1 ACS Laboratories Pty LtdABN: 81 008 273 005



Phone: (07) 3831 6122 Fax: (07) 3831 6133

SUMMARY

This report outlines the methods and results of gas desorption testing and associated coal property analyses performed on two seams (Castor and Pollux) within the Rangal Coal Measures (Bandanna Formation) intersected during exploration drilling by Santos Limited in ATP 337P, Queensland undertaken in February 2006.

ACS Laboratories Pty Ltd was contracted by Santos Limited to provide a mobile field laboratory and field personnel to recover HQ3 core samples, provide core handling and conduct reservoir temperature desorption testing as per the Australian Standard, AS 3980. Further analysis was to take place at the ACS Brisbane based laboratory. The methodology adopted for all sampling and testing is detailed in Chapter 1. The modified gas content data and results of all associated gas and core analyses are presented in a series of tables and graphs in the Chapter 2.

The Humboldt-1 well was part of an appraisal program for coal bed methane and was cored from a depth of 191.55 metres to a total depth of 252.34 metres. All of the recovered coal was placed into desorption canisters and monitored for the determination of gas content. Subsequent to the desorption program, the coal material was slabbed and photographed to record cleat and fracture frequency and orientation. Sub-samples were then removed from one half of the core for residual gas, porosity, proximate and adsorption isotherm analyses.

The recovery of the core was good with consolidated core over most of the coal intervals. The coal was bright with significant banding and poorly developed cleating. Vitrinitic bands were seen to be heavily fractured in places with calcite infilling. Occasional bands of siderite and tuffaceous silt were also present.

As received, total gas contents of the seams

averaged: Castor – 5.87 scc/g (m3/t)Pollux – 5.26 scc/g (m3/t)

Dry and ash free gas contents of the seams

averaged: Castor – 6.52 scc/g (m3/t)Pollux – 6.03 scc/g (m3/t)

The results were of good quality with no sign of canister leakage during the desorption testing.

The combined ash and moisture contents of the coals are reasonably consistent between seams and within any given seam. Given that it is generally accepted that non-coal material does not contribute significantly to the overall gas content of a given coal seam, it was necessary for comparative purposes to normalise the gas content data to a dry, ash-free (DAF) basis.

The composition of the desorbed gases was determined by GC and was reported on an air free basis. The lean gas was low in inerts (nitrogen and carbon dioxide).



Phone: (07) 3831 6122 Fax: (07) 3831 6133

The sorption time, or desorption coefficient, of the coal samples corresponds to the time taken to desorb 63% of the total desorbable gas volume. This measure is used as an independent estimate of the gas diffusion constants for coals. A number of factors can affect the rate of diffusion such as maceral type and the recovery / level of consolidation of the core. In this instance the latter was consistent across the three seams. The main influence on the coefficients of diffusion is then from permeability in an unstressed state, i.e. a reflection of cleat development and fracturing (permeability). Taking into account lost gas and desorbed gas (Q1 + Q2), the sorption times are consistent and relatively low inferring reasonable permeability, providing the coring process and decompression hasn’t damaged the coals.

The maceral analysis indicates that the coal was banded with vitrain lenses of up to 2 mm. The minerals present were mainly disseminated clays with minor quartz rich lenses, while the coals consisted mainly of telocollinite, from the vitrinite group and semifusinite, from the inertinite group.

A drill stem test (DST) over the relevant coal seams recovered water to surface with no gas indicating that the coals are under-saturated with respect to gas at this location. The results of the adsorption isotherm confirm this, however, it should be noted that the isotherm was conducted at the mud return temperature as no temperature gradient was available. New data suggests that the true seam temperature was slightly in excess of the mud return temperature. A temperature increase would result in a decrease in the total gas storage capacity at a given pressure, hence the level of gas saturation would be higher if the analysis had been run at the true seam temperature.

The slabbed core is being stored in ACS Brisbane’s core facility pending construction of a core store at Santos Roma.


GAS CONTENT RESULTS SUMMARY

Client: Santos LimitedWell: Humboldt-1

Sorption Time, Hr's (63%)

Q2 (Q1+Q2)Cannister # Seam Top Depth (m) As Received Q1 % As Received Q2 % As Received Q3 % As Received Q1 + Q2 As Received Total DAF Q1 % DAF Q2 % DAF Q3 % DAF Q1 + Q2 DAF Total

1 Castor 224.27 0.73 13 4.66 85 0.10 2 5.39 5.49 0.81 13 5.18 85 0.11 2 5.99 6.10 25.6 37.72 Castor 225.97 0.56 9 5.43 87 0.25 4 5.99 6.24 0.63 9 6.03 87 0.28 4 6.66 6.94 61.0 37.7

3 Pollux 237.97 0.53 9 4.85 86 0.24 4 5.38 5.62 0.59 9 5.38 86 0.27 4 5.97 6.24 56.4 38.3

4 Pollux 238.97 0.53 9 4.94 86 0.26 5 5.47 5.73 0.62 9 5.81 86 0.31 5 6.43 6.74 63.4 38.6

5 Pollux 240.48 0.35 8 3.9 88 0.20 5 4.24 4.44 0.40 8 4.49 88 0.23 4 4.89 5.12 87.1 37.6

Averages Seam Top Depth (m) As Received Q1 % As Received Q2 % As Received Q3 % As Received Q1 + Q2 As Received Total DAF Q1 % DAF Q2 % DAF Q3 % DAF Q1 + Q2 DAF Total Q2 (Q1+Q2)

Castor Av. = 225.62 0.65 11 5.05 86 0.18 3 5.69 5.87 0.72 11 5.61 86 0.20 3 6.33 6.52 43.3 37.7

Pollux Av. = 239.73 0.47 9 4.56 87 0.23 4 5.03 5.26 0.54 9 5.23 87 0.27 4 5.76 6.03 69.0 38.2

0871-06 Humboldt-1 ACS Laboratories Pty Ltd3 ABN: 81 008 273 005



Phone: (07) 3831 6122 Fax: (07) 3831 6133

PROXIMATE ANALYSIS RESULTS SUMMARY


Cannister # Seam Top Depth (m) Ash Moisture Volatile Matter Fixed Carbon

1 Castor 224.27 8.0 2.1 28.3 61.62 Castor 225.97 7.9 2.0 31.8 58.3

3 Pollux 237.97 7.8 2.0 29.4 60.8

4 Pollux 238.97 13.0 2.0 26.8 58.2

5 Pollux 240.48 11.5 1.9 28.2 58.4

Averages Seam Top Depth (m) Ash Moisture Volatile Matter Fixed Carbon

Castor Av. = 225.62 7.95 2.05 30.05 59.95

Pollux Av. = 239.73 10.77 1.97 28.13 59.13



Phone: (07) 3831 6122 Fax: (07) 3831 6133

DESORBED GAS ANALYSIS RESULTS SUMMARY


Cannister # Seam Top Depth (m) Methane Nitrogen Carbon Dioxide

1 Castor 224.27 97.62 1.57 0.812 Castor 225.97 97.49 1.78 0.73

3 Pollux 237.97 98.82 0.67 0.514 Pollux 238.97 99.35 0.13 0.525 Pollux 240.48 98.24 1.22 0.54

Averages Seam Top Depth (m) Methane Nitrogen Carbon Dioxide

Castor Av. = 225.62 97.56 1.68 0.77

Pollux Av. = 239.73 98.80 0.67 0.52



Phone: (07) 3831 6122 Fax: (07) 3831 6133

CHAPTER 1

DESCRIPTION OF EXPERIMENTS



Phone: (07) 3831 6122 Fax: (07) 3831 6133

1. DESCRIPTION OF EXPERIMENTS

1.1 Gas Content by Seam Temperature Desorption

The gas desorption canisters that were used throughout the program were constructed of stainless steel or powder coated aluminium and designed to accommodate fully recovered HQ3 sized cores in a range of half or full metre lengths. The dead space above the sample, in the case of a partial recovery, was taken up by non porous rubber billets. The canisters were sealed by an 'O'-ring gasket and 'Camlock' lid, and came complete with an outlet valve, safety release valve, and pressure gauge rated to 1000 KPa.

Before transferral of canisters to the well site, each was accurately weighed and correctly labelled. The canisters were individually pressurised with compressed air to 400 KPa and monitored for any leakage prior to use. Following the pressure test, a vacuum was pulled on each canister and the canisters monitored for any air intake prior to use.

The principal field desorption apparatus was comprised of inverted measuring cylinders, associated fittings, and displacement baths containing an acidified solution incorporating 1% NaCl (by weight), 0.5% HCl (by volume) and a colouring additive (methyl red). Measuring cylinders for use in the mobile on-site laboratory were constructed of clear plastic with a maximum capacity of 2000 cubic centimetres. Each cylinder was supplied with two tap valves, and associated clear plastic tubing that connected to the gas canisters and an electric vacuum pump respectively.

The water baths were constructed of standard 240 mm diameter PVC piping and end caps, and attached to an aluminium frame that supported the measuring cylinders. The measuring cylinders were arranged so that when the bath was filled with fluid, the open base was submerged approximately 2-4 cm below the height of water in the bath.

Digital thermometers (0.5oC accuracy) and calibrated barometers (0.5 KPa accuracy) were used throughout to monitor ambient atmospheric conditions at each recording point. Electronic 'stop watches' were utilised for the accurate timing of volume readings, and all weights were measured to an accuracy of 0.01 g using digital balances.

On recovery at surface, the cores were quickly washed, marked for orientation and depth, and classified to enable desorption monitoring as detailed below. In order to assess the desorbable gas content of the coal seams encountered during drilling, all coal material was analysed. The sampling depths of the cores were derived from the continuous core depth record. This was maintained by means of the 'Core Sampling Timesheet' which consisted of core numbers, driller's depths, core depths, and times that the core was penetrated, left bottom and reached surface (see Chapter 6).



Phone: (07) 3831 6122 Fax: (07) 3831 6133

The procedure used throughout for gas desorption monitoring followed that outlined in the Australian Standard for the determination of desorbable gas content of coal seams - Direct method (AS 3980-1999). In summary, this procedure incorporated the following systematic steps.

Coring pre-determined depth intervals was carried out by means of a wire line retrievable, HQ3 (61.1mm), triple tube core barrels. The start time at which each core was penetrated, the time at which the core left bottom (tb - time core retrieved), and the time at which the core arrived at surface (ts - time at surface) were recorded. Since the coals were expected to be saturated, the client requested that time zero, or commencement of desorption for lost gas calculations, be taken as tb as opposed to tb- ts/2. Once the inner tube reached the surface, the drilling crew laid it out on the core table and pumped the slips (containing the core) out. The core was then quickly cleaned, orientated and any potential coal or carbonaceous shale identified. The samples were immediately placed in desorption canisters and weighed prior to being placed in seam temperature baths for gas content testing. The temperature used for the testing was taken from the mud returns. Upon connection of the canister to the desorption apparatus, 'time on test' was recorded and desorbed gas volumes read at the following intervals (subject to ongoing operations):

Every 1 minute for 30 minutesEvery 5 minutes for 1 hourEvery 15 minutes for 1 hourEvery 30 minutes for 4 hoursEvery 1 hour for 4 hours

After this schedule, the readings were extended to a wider frequency, generally in the range of 6-24 hours, dependent on the volumes produced. At each reading, the following information was recorded on specifically designed data sheets and subsequently entered into the computer:

1) Progressive volume of gas in the measuring cylinder2) Water column height3) Bath water height4) Ambient temperature5) Ambient atmospheric pressure6) Reset value (where appropriate)

Data acquisition continued until desorption had reached equilibrium or flat lined, i.e. no additional desorbed gas for five days. The coal was then carefully removed and slabbed with one half of the core used for the determination of residual gas content and proximate analysis.

The procedure adopted for residual gas analysis involved the weighing of a sub-sample to an accuracy of 0.01 g, with the optimal weight being in the range 15-300 g. The sample was initially broken in a hermetically sealed blender and subsequently crushed in a hermetically sealed ball mill to less than 212 µm particle size. The gas volume released by this process was measured by the direct water displacement method and a volume, per unit mass of coal, calculated at standard temperature and pressure conditions.



Phone: (07) 3831 6122 Fax: (07) 3831 6133

1.2 Compositional Analysis of Gas

To aid in the overall assessment of coal bed methane resources, samples of evolved gas were collected from each gas desorption canister. Inert gas was purged through the measuring cylinders and rubber hoses to minimise air contamination in desorption samples. A sub-sample of each desorbed gas was transferred into an evacuated stainless steel cylinder. The sampling procedure involved connecting the evacuated cylinder via a rubber hose to the measuring cylinder. The valve from the measuring cylinder was opened, filling the sample cylinder with the gas. The gases were analysed on a portable ‘Varian Micro Gas Chromatograph’ instrument in the field laboratory to give initial indications of the gas composition, and re-run in Brisbane as a quality control check on an air free basis.

1.3 Proximate Analysis

A representative sub-sample of coal was removed from each desorption canister for proximate analysis. This sampling strategy was designed to:

a) Calculate gas contents on a DAF basis for comparison purposes

b) Determine the factors controlling variations in in-situ gas contents within a given seam

Every attempt was made to exclude all non-coal material from proximate analysis sampling, on the basis that these rocks did not contribute to the overall gas content of the coal seam in question.

The testing procedure adopted throughout for proximate analysis conformed to the appropriate Australian Standard for coal analysis and testing (AS 1038.3-1989). In summary, this procedure involved the drying of a known mass of coal in an oxygen-free (nitrogen flush) oven at 105-110°C for a period of between 1.5 to 3 hours. After removal from the oven, and subsequent to the sample being placed in a desiccator, the coal was weighed and the loss of mass ascribed to inherent moisture.

The sample was then heated in a cylindrical silica crucible in a muffle furnace at 900°C for seven minutes. The loss of mass recorded during this process equated to the proportion of volatile matter present in the sample. Determination of ash content was achieved by combusting the coal until a constant mass was attained. This was achieved by heating the sample to 500°C for 30 minutes before increasing the temperature to 815°C, until combustion was complete. The percentage of ash was calculated from the mass of the residue remaining after incineration. The amount of fixed carbon was not determined directly, but represented the difference between the sum of all other components.



Phone: (07) 3831 6122 Fax: (07) 3831 6133

1.4 Dry and Ash Free Normalisation of Gas Content

As it is generally accepted that non-coal material does not contribute significantly to the overall gas content of a given coal seam, it was necessary for comparative purposes to normalise the gas content data to a dry, ash-free (DAF) basis. This was achieved by using the following equation:

DAF Gas Content gas volume ( scc / g )⎛ ⎛ ash (%) moisture (%) ⎞⎞

core wt ( g ) ⎜ core wt ⎜ ⎟⎟100

⎝ ⎝ ⎠⎠This equation was applied to the lost gas, desorbed gas, and residual gas components so that comparisons could be made between all the data gathered during the exploration program.

Whilst every attempt was made to remove non-coal partings from samples prior to weighing and preparation for proximate analysis, it was not always possible to isolate fine material. Consequently, the corresponding DAF gas content results may be artificially high.

1.5 Calculation of Desorption Coefficient

The sorption time, or desorption coefficient, of a coal sample corresponds to the time taken to desorb 63% of the total desorbable gas volume (Q2). This measure is used as an independent estimate of the gas diffusion constant for a given coal (see Close & Erwin 1989). Two methods for calculating sorption time are widely used in the literature, namely the sorption time method outlined by Close & Erwin (1989) and the more recently adopted GRI or modified sorption time method.

The sorption time method, as outlined by Close & Erwin (1989), was calculated using the following formulae:

V63% Q2 0.63

Sorptiontime TCS

TCS TCS

V63% CDVlbl

where:

lbl ubl lbl CDVubl CDVlbl

TCSlbl = time core sealed (lower bounding limit) TCSubl = time core sealed (upper bounding limit)CDVlbl = cumulative desorbed volume (lower bounding limit) CDVubl = cumulative desorbed volume (upper bounding limit)



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The modified sorption time method is identical in approach to that outlined above, with the only difference being that this method incorporates the estimated lost gas volume into the cumulative desorbed volume and uses time zero (i.e. the commencement of desorption for lost gas calculations) as the starting point for elapsed time.

V63% Q1 Q2 0.63

By incorporating the lost gas into the equation, this method is considered to be a more reliable indicator of the desorption behaviour of a given coal.

1.6 Adsorption Isotherm

Coal sorption isotherms represent the relationship between gas storage capacity of a given coal sample and pressure, and are used to predict the maximum volume of gas that will be released from a coal seam as the reservoir pressure declines during long-term production (Mavor et al. 1990). When compared with measured gas contents and reservoir pressure, the sorption isotherm data also provides a guide as to the relative gas saturation of the coal, and the bottom-hole pressure required to initiate significant methane desorption (critical desorption pressure).

A sub-sample of coal was selected by the client. Prior to the adsorption isotherm analysis, a slabbed section of the coal was crushed to less than 250 µm particle size, and thoroughly mixed into a heterogeneous blend before sub-dividing a sub-sample for proximate analysis. Crushing the coal increased the surface area and accelerated the adsorption process.

Due to the influence of moisture on the sorptive capacity of coal (Joubert et al. 1973), the equilibrium moisture content of the remaining sample was then determined by a standardised procedure that involved placing the pre-weighed sample in a desiccator over a saturated solution of K2SO4 until an equilibrium weight was attained. Once completed, the sample was placed in a test cell maintained at a temperature equivalent to the measured reservoir temperature, and pure methane was introduced into the system. As the test cell pressure was progressively increased, the amount of gas adsorbed was monitored and the results recorded.

This data was then interpreted by using the equation originally developed by Langmuir (1918) that describes the relationship between the gas storage capacity of coal and pressure. The equation is expressed as follows:

g VL 1 ad

P

P PL

Where g = gas storage capacity (scc/g), VL = Langmuir Volume (scc/g), ad = ash fraction (dry basis), P = pressure (MPa), and PL = Langmuir pressure (MPa).



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The Langmuir pressure and Langmuir volume are estimated by fitting the data to the following linearised equation.

P a

g 0 a1 P

The Langmuir coefficients can then be derived from the intercept a0 and the slope of the line a1, based on the following linear regression relationships.

VL 1

11 ad

PL a0VL 1 ad

To determine the critical desorption pressure (Pc) for known gas content, the following relationship can be used.

P PL gcVL 1 ad gc

Where PL = Langmuir pressure, VL = Langmuir volume, ad = the ash fraction (dry basis), and gc = the DAF total gas content of the sample, including residual gas content (i.e. Q1 + Q2 + Q3).

The gas saturation level (gs) of a given coal was calculated as follows:

g gc 100

s ⎛ P V ⎞⎜ Re s L ⎟⎜ P L ⎟⎝ Re s p ⎠

It is generally agreed that the gas storage capacity of coal is a function of rank, temperature, the moisture content of the coal matrix, and pressure (Mavor et al. 1990, Hawkins et al. 1992). As coal rank can be assumed to be consistent vertically within a single seam and the temperature used for adsorption experimentation is equivalent to reservoir temperature, the variable most likely to influence the determination of Langmuir constants is the moisture content of the sample. In order to approximate reservoir conditions, the equilibrium moisture procedure was adopted for this sample, and with all other variables remaining constant, the adsorption parameters measured should characterise the coal of interest.

a

c



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1.7 Maceral Analysis

A small sub-sample of coal was selected by the client for maceral analyses. Coal samples for maceral analysis are usually crushed, sub-sampled and prepared as grain mounts. In this instance, depth intervals were selected by the client and samples were prepared from whole core sections with the polished face of the samples orthogonal to the bedding plane.

Whilst every attempt was made to ensure the sub-sample was representative of the whole core, uncertainty remains regarding the representivity to the whole core given the variation in plies.

1.8 Compositional Analysis of Recovered Water

Following the coring program, a DST was conducted over the coal interval with water recovered to surface. This was submitted to ACS Laboratories for 10 ion API analysis. Sub-samples of the water were filtered and the ten major cations and anions analysed by ICP. Physical properties such as pH, conductivity, resistivity, etc. were measured at the appropriate reference temperatures.



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CHAPTER 2

GAS DESORPTION RESULTS


LOST GAS PLOT

200015001000500

0-500 0.0-1000-1500-2000-2500-3000

Lost Gas (scc) = 2745.9

0.1 0.2 0.3 0.4 0.5 0.6

Square Root of Time (Hrs)

DESORBED GAS PLOT

54.5

43.5

32.5

21.5

10.5

0Desorbed Gas (scc/g) = 4.66

010203040506070Time (Days)

WELL NAME: Humboldt-1

ACS Laboratories Pty LtdGAS DESORPTION DATA SUMMARY

SAMPLE DETAILSSAMPLE NO 1

CAN DETAILSCAN NO 1

DESORBED GASUSBM LOST GAS (scc) 2746 RESIDUAL GAS (scc/g) 0.10

SEAM NAME Castor Seam CAN LENGTH (m) 1 USBM LOST GAS (scc/g) 0.73 TOTAL RAW GAS (scc/g) 5.49DEPTH FROM (m) 224.27 CAN WEIGHT (kg) 5.964DEPTH TO (m) 225.27 CAN + SAMPLE WT (kg) 9.718 DESORPTION TEMP (°C) 25.0 DAF LOST GAS (scc/g) 0.81THICKNESS (m) 1.000 SAMPLE WEIGHT (kg) 3.754 DAF DESORBED GAS (scc/g) 5.18COAL LENGTH (m) 1.000 CAN VOLUME (cc) 3200 RAW DESORBED GAS (scc) 17478 DAF Q1 + Q2 (scc/g) 5.99COAL WEIGHT (kg) 3.754 SAMPLE VOLUME(cc) 2800 RAW DESORBED GAS (scc/g) 4.66CORE DIAM (mm) 61 CAN VOID SPACE (cc) 400 DAF RESIDUAL GAS Q3 (scc/g) 0.11SAMPLE TYPE CORE ESTIMATED VOID (cc) 0 RAW TOTAL DESORBED (scc/g) 5.39 DAF TOTAL GAS Q1+2+3 (scc/g) 6.10

CORE DETAILS Date Time COAL ANALYSIS DATA DESORPTION TIME GAS ANALY SIS (Air-Free)

COAL PENETRATED 19/02/06 14:11:00 Ash (%) 8.0 Hrs Early Mid LateCORE LEFT BOTTOM 19/02/06 15:58:00 Volatile Matter (%) 28.3 ON TEST 1407.9CORE AT SURFACE 19/02/06 16:02:00 Inherent Moisture (%) 2.1 63% Q2 25.6 CH4 (%) 97.62CORE ON TEST 19/02/06 16:11:00 Fixed Carbom (%) 61.6 63% Q1+Q2 37.7 CO2 (%) 0.81TIME ZERO 19/02/06 16:00:00 N2 (%) 1.57

Humboldt-11

Des

orbe

d G

as

Des

orbe

d G

as


LOST GAS PLOT

600

400 Lost Gas (scc) = 729.7

200

0

-2000.0 0.1 0.2 0.3 0.4 0.5 0.6

-400

-600

-800Square Root of Time (Hrs)

DESORBED GAS PLOT

6

5

4

3

2 Desorbed Gas (scc/g) = 5.43

1

00 10 20 30 40 50 60 70

Time (Days)




CAN DETAILSCAN NO 2


SEAM NAME Castor Seam CAN LENGTH (m) 1 USBM LOST GAS (scc/g) 0.56 TOTAL RAW GAS (scc/g) 6.24DEPTH FROM (m) 225.97 CAN WEIGHT (kg) 6.394DEPTH TO (m) 226.97 CAN + SAMPLE WT (kg) 12.261 DESORPTION TEMP (°C) 25.0 DAF LOST GAS (scc/g) 0.63THICKNESS (m) 1.000 SAMPLE WEIGHT (kg) 5.867 DAF DESORBED GAS (scc/g) 6.03COAL LENGTH (m) 1.000 CAN VOLUME (cc) 3200 RAW DESORBED GAS (scc) 7031 DAF Q1 + Q2 (scc/g) 6.65COAL WEIGHT (kg) 1.295 SAMPLE VOLUME(cc) 2800 RAW DESORBED GAS (scc/g) 5.43CORE DIAM (mm) 61 CAN VOID SPACE (cc) 400 DAF RESIDUAL GAS Q3 (scc/g) 0.28SAMPLE TYPE CORE ESTIMATED VOID (cc) 0 RAW TOTAL DESORBED (scc/g) 5.99 DAF TOTAL GAS Q1+2+3 (scc/g) 6.93



Humboldt-12

Des

orbe

d G

as

Des

orbe

d G

as


LOST GAS PLOT

15001000500

0-500 0.0

-1000-1500-2000-2500

Lost Gas (scc) = 2077.4

0.1 0.2 0.3 0.4 0.5 0.6 0.7


DESORBED GAS PLOT

6

5

4

3


1

00 10 20 30 40 50 60 70

Time (Days)




CAN DETAILSCAN NO 3


SEAM NAME Pollux Seam CAN LENGTH (m) 1 USBM LOST GAS (scc/g) 0.53 TOTAL RAW GAS (scc/g) 5.63DEPTH FROM (m) 237.97 CAN WEIGHT (kg) 6.373DEPTH TO (m) 238.97 CAN + SAMPLE WT (kg) 10.275 DESORPTION TEMP (°C) 25.0 DAF LOST GAS (scc/g) 0.59THICKNESS (m) 1.000 SAMPLE WEIGHT (kg) 3.902 DAF DESORBED GAS (scc/g) 5.38COAL LENGTH (m) 1.000 CAN VOLUME (cc) 3200 RAW DESORBED GAS (scc) 18938 DAF Q1 + Q2 (scc/g) 5.97COAL WEIGHT (kg) 3.902 SAMPLE VOLUME(cc) 2800 RAW DESORBED GAS (scc/g) 4.85CORE DIAM (mm) 61 CAN VOID SPACE (cc) 400 DAF RESIDUAL GAS Q3 (scc/g) 0.27SAMPLE TYPE CORE ESTIMATED VOID (cc) 0 RAW TOTAL DESORBED (scc/g) 5.39 DAF TOTAL GAS Q1+2+3 (scc/g) 6.24



Humboldt-13

Des

orbe

d G

as

Des

orbe

d G

as


LOST GAS PLOT

1000

500 Lost Gas (scc) = 2113.0

0

-5000.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

-1000

-1500

-2000

-2500 Square Root of Time (Hrs)

DESORBED GAS PLOT

6

5

4

3


1

00 10 20 30 40 50 60 70

Time (Days)




CAN DETAILSCAN NO 4



CORE DETAILS Date Time COAL ANALYSIS DATA DESORPTION TIME GAS ANALY

SIS (Air-Free)


Humboldt-14

Des

orbe

d G

as

Des

orbe

d G

as


LOST GAS PLOT

1000

Lost Gas (scc) = 1351.9500

0

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

-500

-1000

-1500


DESORBED GAS PLOT

4.54

3.53

2.52

1.51

0.50 Desorbed Gas (scc/g) = 3.89

010203040506070Time (Days)




CAN DETAILSCAN NO 5



CORE DETAILS Date Time COAL ANALYSIS DATA DESORPTION TIME GAS ANALY

SIS (Air-Free)


Humboldt-15

Des

orbe

d G

as

Des

orbe

d G

as



Phone: (07) 3831 6122 Fax: (07) 3831 6133

CHAPTER 3

MACERAL ANALYSES

REFLECTANCE HISTOGRAM

7060504030201000.3 0.4 0.5 0.6 0.7 0.8 0.911.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.92VITRINITE REFLECTANCE % - MAXIMUM



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COAL PETROGRAPHY – VITRINITE REFLECTANCE

CLIENT: Santos Limited REPORT 0871-06SAMPLE Humboldt-1, sample 4 DATE 20/7/06

REFLECTANCE(AS2486; 546NM; OIL Rl 1.518; STANDARDS 0.3% - 3.3%)Ro MAX% No. Mn% MX% S.D. Rr%1)

Thicker lenses 0.85 25 0.75 0.95 0.05 0.80Thin lenses 0.79 25 0.70 0.88 0.04 0.75ALL VITRINITE 0.84 50 0.70 0.95 0.05 0.77

VITRINITE REFLECTANCE DISTRIBUTIONV7 V8 V9

Thicker lenses 6.0 32.0 12.0Thinner lenses 24.0 26.0ALL VITRINITE % 30.0 58.0 12.0

TOTALThicker lenses 50.0Thinner lenses 50.0ALL VITRINITE % 100.0

1) Note Rr calculated from Rmax

Analysed:Coal & Organic Petrology Services P/L Reported by: AP314

PER

CE

NT

OF

MEA

SUR

EMEN

T

COMMENTS: Coal is banded, with vitrain lenses to 2 mm, but generally much thinner. Minerals mainly disseminated clays, with one thick (2 mm) quartz-rich lens in the middle of the core specimen; minor carbonate & quartz, trace pyrite.



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COAL PETROGRAPHY – VITRINITE REFLECTANCE

CLIENT: Santos Limited REPORT 0871-06SAMPLE Humboldt-1, sample 4 DATE 20/7/06

Maceral Group % %mmf ISO7404:BS6127:AS2856

Maceral Sub Group Telovitrinite

Maceral Textinite Texto-ulminite Eu-ulminite Telocollinite

%

27.8

%mmf

32.1

Vitrinite 32.7 37.7 DetrovitriniteAttrinite Densinite Desmocollinite 4.8 5.6

GelovitriniteCorpogelinite Porigelinite Eugelinite

Sporinite 2.2 2.6

Liptinite 3.6 4.2

Cutinite Resinite Liptodetrinite Alginite Suberinite Fluorinite Exsudatinite Bituminite

1.4 1.6

Fusinite 7.9 9.1Telo-inertinite Semifusinite

Funginite38.5 44.4

Inertinite 50.4 58.1 Detro-inertinite Inertodetrinite 3.0 3.5Micrinite 0.4 0.5

Gelo-inertinite Macrinite 0.6 0.7

Minerals 13.3 13.3

100 100Points counted 496

100.0 100.0

Analysed by Coal & Organic Petrology Services P/L, in accordance withAustralian Standard AS2856, based on ICCP guidelines and ISO7404. Reported by:



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CHAPTER 4

ADSORPTION ISOTHERM



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30

25 MeasuredFitted Langmuir

20Gas Adsorbed15(m3/t)10

5

0

0 1000 2000 3000 4000 5000 6000 7000

Absolute Pressure (kPa)

ADSORPTION ISOTHERM AT 26°C

CLIENT:Santos Limited SEAM: Pollux

SAMPLE: Humboldt-1 Sample 4 REPORT: 0871-06

Coal density (He,cc/g) 1.47

Proximate analysis (%) dafAir dried moisture 3.4 -

Volatiles 28.4 32.61

Fixed C 58.7 67.39Ash 9.5 -Total 100.0 100.00

Isotherm Standard Deviation = 0.25 m3/t

Isotherm ParametersGas adsorbed (desorbable) Gas adsorbed (total gas) VL(abs, daf)VL (gauge) = 27.79 m

3/t VL (abs)= 28.64 m3/t 32.88

PL (gauge) = 3412 kPa PL (abs)=Gas content at 1 atm.

3311 kPa0.85 m3/t

Abs. Pressure (kPa) Total adsorbed gas (m3/t)

101.3 0.9411.6 3.5721.9 5.41376.9 8.22652.4 12.55203.4 17.66168.7 19.2

Isotherm C = VL.P/(P+PL)

C: gas content, P: pressureVL and PL : Langmuir Volume and Pressure

Gauge pressure kPa

Gas adsorbed measured

(m3/t)Langmuir

0 0.00 0.00310 2.69 2.32621 4.53 4.281276 7.39 7.562551 11.64 11.895102 16.79 16.656067 18.30 17.79



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CHAPTER 5

COMPOSITION OF RECOVERED WATER (DST#1)



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WATER ANALYSIS

Client : Santos LtdWell: Humboldt-1Sample: DST-1 Water 233-252mDate: 27/1/2006

CHEMICAL COMPOSITION

Cationsmg/L meq/L

Sodium (Na): 2150 93.5 Chloride (Cl):Calcium (Ca): 40 2.0 Bi-Carbonate (HCO3):Magnesium (Mg): 17 1.4 Sulphate (SO4):Iron (Fe): <0.05 <1.0 Carbonate (CO3):Potassium (K): 86 2.2 Fluoride (F):

Hydroxide (OH):

Note: Bi-Carbonate, Carbonate and Hydroxide ions measured as CaCO3

mg/L 3470478248.0

<1.0<1.0

Anionsmeq/L

97.79.60.5<1.0<1.0<1.0

DERIVED DATA TOTAL AND BALANCE

Total Dissolved Solids: mg/L Cations 99Based on E.C.Calculated (HCO3 = CO3)

Total Hardness (as CaCO3)Total Alkalinity (as CaCO3)

71806080173486

AnionsIon Balance (Diff*100/sum)Sodium Adsorption Ratio Difference (Anions - Cations)

1084.189

719

Sum (Anions + Cations) 207

OTHER ANALYSES

Resistivity 0.900 ohm.m @ 25 °CConductivity (E.C.) 11000 µS/cm @ 25 °CReaction - pH 8.3Density 1.0101 g/cm3 at 15.6 °C

WATER ANALYSIS (mg/L)Client : Santos LtdWell:Humboldt-1

ACSL AB O RAT O R IE S

PT Y. LT D .

Sodium (Na):10000

Sulphate (SO4): 1000 Calcium (Ca):

100

10

Fluoride (F): 1 Magnesium (Mg):

0

Bi-Carbonate (HCO3): Iron (Fe):

Chloride (Cl): Potassium (K):


0871-06 Humboldt-1 ACS Laboratories Pty Ltd27 ABN: 81 008 273 005



Phone: (07) 3831 6122 Fax: (07) 3831 6133

CHAPTER 6

CORE SAMPLING TIMESHEET



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0871-06Santos Limited

CORE SAMPLING TIMESHEET

Client :Job Number :

Well :Date :Engineer :

Core Number

Depth Time Core Penetrated

Time Core Left Bottom

Time Core Reached Surface

1 191.55 23:07 00:28 00:33

2 192.20 00:48 03:37 03:41

3 198.34 04:17 07:00 07:04

4 204.34 07:20 09:25 09:30

5 210.30 09:40 11:37 11:43

6 216.33 11:50 13:58 14:02

7 222.34 14:11 15:58 16:02

8 228.29 16:12 18:42 18:47

9 234.28 19:02 21:18 21:22

10 240.33 21:39 00:05 00:11

11 246.31 00:22 03:20 03:26

12 252.34 N/A N/A N/A

Humboldt-118/02/2006Nick Robson



Phone: (07) 3831 6122 Fax: (07) 3831 6133


APPENDIX 7Survey Plan



Phone: (07) 3831 6122 Fax: (07) 3831 6133




Phone: (07) 3831 6122 Fax: (07) 3831 6133

WELL COMPLETION REPORT FOR

HUMBOLDT 1WIRE LINE LOG DATA

ADDITIONAL DATA CAN BE OBTAINED BY CONTACTING

Geoscience Information Services Department of Natural Resources and Mines (DNRM)

[email protected] (07) 3035 5256

s3-ap-southeast-2.amazonaws.com · web viewthe bandanna formation coals in the area have gentle...

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