Central Petroleum (ASX: CTP) has intersected net coal of around 16 metres in the Pedirka coal stratigraphic program in the Pedirka Basin.
Drilling has reached a depth of 957.5 metres from the drill floor, and has tagged the top Permian Purni Formation at a depth of 798 metres.
The coal stratigraphic program aims to expand the estimated JORC exploration target, with the program forecast to be completed in early to mid-January 2011.
The program will drill four diamond drill holes to an average depth of 800 metres, which will better define the Permian Purni coal thicknesses.
Previous independent reports have estimated the total tonnage of coal above 1,000 metres as being 635 billion tonnes, (low estimate), to 865 billion tonnes, (high estimate).
The mineral leases are held by a wholly owned subsidiary, Merlin Coal Pty Ltd.
Merlin has applied for additional mineral leases covering 3,700 square kilometres in the Pedirka Basin, which the company said are thought to potentially overlay relatively shallow coal.