Acreage acquisitions

ERM Gas took part in Western Australia's acreage release program in 2007 and was successful in becoming the preferred bidder for over 1,000km² in the southern Perth Basin. ERM hopes to conclude Native Title agreement negotiations with the Traditional Owners early in 2009.

In addition, appraisal of the Permian Sue Coal Measures is scheduled for 2009. The Sue Coal Measures in the Vasse Shelf contain source and reservoir, and intra-formational seals for potential gas accumulation.

A joint bid has been submitted under Western Australia's 2008 acreage release program for two blocks, covering approximately 2,450km² of the central Perth Basin. These blocks are close to Perth and the industrial precinct of Kwinana. ERM Gas holds a 60 per cent share of the bid.

Prospects include the Jurassic Cattamarra Coal Measures, for both conventional and coal seam gas developments; against the backdrop of rising prime energy costs.