AJ Lucas Group annual report 2007-08

A wide variety of bespoke finishes
was just one of the challenges at
Merivale’s Ivy. This is Mad Cow,
home of some of Sydney’s finest
steaks and one of nine restaurants
in the complex.
provider in Australia and leaves us ideally placed
to capitalise on this fast-growing industry.
Our teams include experienced upstream
operations personnel, geologists, petroleum
and drilling engineers, project managers, safety,
environmental and quality officers as well as
experienced site crews.
With a total of 88 drilling rigs and
complementary equipment, we’re now by far
the largest CSG drilling company in Australia,
supported by a full range of services to take CSG
right to the market.
Lucas’ CSG Assets Gloucester coal seam gas
Our Gloucester CSG project’s gas reserves were
independently certified by Netherland, Sewell
& Associates Inc. in February 2008, confirming
the commercial viability of the basin’s gas. Since
then we’ve moved our focus from exploration
and testing to preparing for production.
The development of Gloucester has
progressed rapidly in the last year. We’ve
established a strong locally-based team
to manage detailed planning of the field
development, a processing facility and a pipeline
to link with the national pipeline system. The
formal development proposal was lodged with
the NSW Department of Planning in August
2008. Consultation with authorities, landowners
and other stakeholders is underway.
Sydney Gas
Lucas has had a long relationship with Sydney
Gas, as an investor and as a supplier of services.
In January 2008, the two companies made
a joint arrangement for the exploration and
commercialisation of Sydney
Gas’ Sydney Basin assets. The
arrangement comprises an
investment by Lucas in Sydney
Gas and agreements for Lucas to
provide geological, engineering,
drilling and other services.
The companies’ ties were
further strengthened with Lucas
director Andy Lukas joining
Sydney Gas as CEO and Allan
Campbell as a non-executive
director. Lucas now owns 19.99%
of Sydney Gas.
Bowen Basin (ATP651)
Lucas has a 15% interest in
ATP651, with the balance
owned by BG and Queensland
Gas Company. The prospect is located close to
Berwyndale South where substantial coal seam
gas reserves have been located. A major drilling
programme began earlier in 2008, with initial
reserves booked in July 2008.
Arawn Project, British Columbia, Canada
Lucas owns 60% of Arawn Energy, with
international CSG experts Dr Chris Cornelius
and Professor Marc Bustin owning the balance.
Arawn is our North American investment
vehicle and provides access to Marc’s and Chris’
expertise on this and other projects.
Arawn’s current focus is the Grizzly and Red
Deer Prospect in the foothills of the Rockies.
Initial core holes found 40 metres of coal with
gas content of 7–12 m 3 /t.
12 LUCAS group