The Gardanne permit covers an area of 365 km2 and encompasses part of the coal basin and old workings of the L’Arc Basin, north east of Marseille. Historical coal production from the Basin is approximately 80 million tonnes of sub bituminous coal.

The coal-bearing sequence is up to 300 metres thick and contains up to multiple seams. The coal seams are Late Cretaceous in age. Available data has shown the presence of methane within the former coal mines. It is possible that some of the gaseous hydrocarbons present in the old mine workings could have been sourced from the underlying rocks. Mining records demonstrate that in some areas gas relief ahead of mining was undertaken successfully by drilling vertical holes from the surface.

European Gas Limited has identified a location from which one vertical appraisal well may be drilled to test the gas content and other characteristics of the coals. Baseline environmental studies for this location were commenced in 2010.

Resources CBM

The following table summarises the Gas in Place resources for the Gardanne project.

Gas in Place Resources as at October 2007

The estimates were made independently by Deutsche Montan Technologie GmbH of Essen, Germany on behalf of European Gas Limited. The 3D models used in the preparation of the estimates were developed using PETREL 2007tm software.