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http://www.cnxmarketlink.com/en/releases/archive/May2010/26/c6688.html

 

PETROMIN RESOURCES LTD.

 

Attention Business Editors

Petromin Resources Ltd. - Greatly increased gas content combined with very thick coal in two formations confirmed in initial results of 2009 CBM drilling

TSX.V Symbol: PTR

VANCOUVER, May 25 /CNW/ - Petromin Resources Ltd. (TSX.V: PTR)

("Petromin" or the "Company") is pleased to announce that Terrawest Energy

Corp. ("TWE") has reported positive results of gas desorption testing of drill

core samples from its Liuhuanggou CBM Project in Xinjiang, China.

As previously reported, the 2009 drilling program included testing coal

drill core samples taken from both the Xishanuyao ("J2X") and Badaowan ("J1B")

formations.

Well LHG 09-03 was drilled to total depth of 726 meters ("m") and

intersected over 50m (165 feet) of J2X coal. Coalbed methane ("CBM")

desorption testing was initiated as planned and the results indicate the J2X

to have greater gas content than previously anticipated. Gas content as

calculated to the end of March 2010 ranges from a minimum value of 30.08

standard cubic feet ("scf")/ton ("t") to a maximum of 268.69 scf/t. The

readings confirm the final desorption results from well LHG 08-01 which had

shown higher gas content results for the J2X particularly the upper 4-5 and

9-10 seams where desorption results of 53.62 to 199.92 scf/t and 53.74 to

243.32 scf/t, respectively, were measured. The gas content results for the J2X

are especially encouraging when combined with the thickness of the coal seams.

J2X net coal seam thickness has been calculated to average 25.74m (85 feet).

Net thickness is calculated by correcting intersected thickness for formation

dip and observed mineral partings.

The initial gas desorption results for the J2X from 2006 exploration

drilling had ranged to a maximum of 100scf/t in wells LHG 06-01 and LHG 06-02.

Desorption results for J1B coal samples taken from wells LHG 09-01 (749m

total depth) and LHG 09-02 (844m total depth) indicate the J1B coal to be

generally higher in gas content than the J2X as test results are reported to

range from 105.98 to 335.43 scf/t and 86.74 to 350.49 scf/t, from the two

wells respectively. The multiple J1B coal seams have an average net aggregate

thickness of 19.15m (63.2 feet).

Each of the two target formations represents a viable CBM prospect on a

stand-alone basis. Taken together, the total average net thickness of the two

coal seam packages (44.9m or 148.7 feet) and the latest gas content results

represent a unique CBM prospect in the world when compared with major CBM

producing or exploration basins. Reported gas contents and seam thicknesses

are for coal only and do not include other formation rocks or coal seam

surrounding rocks which were sampled and analyzed separately. These other

rocks including shale are being analyzed at labs in North America.

CBM desorption testing of the coal samples was completed by the

Laboratory of the Xinjiang Coal Bureau in Urumqi, Xinjiang, China under the

guidance of Norwest Corporation of Calgary, Canada. Norwest Corporation

designed and supervised the drilling and coal drill core sampling program and

provided the gas content figures reported herein to TWE. Norwest also

conducted the sampling and preparation of samples of other rocks including

shale.

(A comparison of net coal thickness, production well spacing and gas

content between Junggar Basin and other major CBM producing basins around the

world is presented below.)

<<

(Comparison of CBM Reservoir Characteristics of

Junggar Basin and Major Producing Basins)

-------------------------------------------------------------------------

Typical Typical Annual

Typical Well Gas Basin

Net Coal Spacing Content Production

Basin Formations Description (m) (Acres) (scf/t) (2006)

-------------------------------------------------------------------------

San Juan Fruitland Bituminous 20-25 320 430 1 Tcf

USA Coal

-------------------------------------------------------------------------

Black Pottsville Bituminous 8-10 80 350 127 Bcf

Warrior Coal

USA

-------------------------------------------------------------------------

Piceance Williams Bituminous 20-25 60-80 750 4 Bcf

USA Fork Coal

-------------------------------------------------------------------------

Raton Raton, Bituminous 10 160 350 105 Bcf

USA Vermejo Coal

-------------------------------------------------------------------------

Western Horseshoe Sub-bit/low 10-15 80 60 323 Bcf*

Canadian Canyon Vol Bit C

Sedimen-

tary

-------------------------------------------------------------------------

Surat Walloon Bituminous 20 160 125-350 Not available

Australia Coal

-------------------------------------------------------------------------

Kutai Pranget Sub- 20 tbd 50+ Not in

Indonesia bituminous (est) commercial

Coal production

-------------------------------------------------------------------------

TWE Liuhuanggou Project under the PSC

-------------------------------------------------------------------------

Junggar Xishanyao Sub-bit/low 25.74 80-160 30-269

Xinjiang (J2X) Vol Bit C (Potential)

-------------------------------------------------------------------------

Badaowan Sub-bit/low 19.15 80-160 50-350

(J1B) Vol Bit C (Potential)

-------------------------------------------------------------------------

TOTAL

J2X+J1B 44.9 80-160 30-350

-------------------------------------------------------------------------

>>

 

Sources: US GRI, 2004; Stevens, S. "Indonesia Coalbed Methane Indicators

and Basin Evaluation", 2004; Robert W. Day, Coal seam gas booms in eastern

Australia, June 2009

http://www.eia.doe.gov/oil_gas/rpd/cbmusa2.pdf

TWE holds a 47% interest in the Liuhuanggou Production Sharing Contract

(PSC) executed in December 2005 with China United Coalbed Methane (53%). TWE

is operator of the PSC, which cover 653 sq km (255 sq miles or 163,200 acres).

Administration of the PSC has passed to PetroChina Coalbed Methane Company

Ltd. The PSC defines CBM as all gas mainly consisting of methane (CH4) in four

named geologic formations of Jurassic age to a depth of 1500 meters (4950

feet).

About Petromin Resources Ltd.

Petromin is progressive international petroleum and natural gas

exploration and Production Company listed Tier 1 on the TSX Venture Exchange.

Petromin was ranked 24th of the Top 100 Fastest Growing Companies in BC by

Business in Vancouver in 2009 based on a 704% revenue increase over the past 4

years. Petromin currently owns a 30% interest in TWE and provides professional

services under the terms of a management contract with TWE.

On Behalf of the Board of Directors

Dr. A Ross Gorrell

Co-Chairman and President

Neither TSX Venture Exchange nor its Regulation Services Provider (as

that term is defined in the policies of the TSX Venture Exchange) accepts

responsibility for the adequacy or accuracy of this release.

 

 

 

 

 

-30-

/For further information: Petromin Resources Ltd., 390-1090 W. Georgia

St., Vancouver, B.C., V6E 3V7, T. (604) 682-8831, F. (604) 682-8683,

[email protected]

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