European Gas Ltd. Restarts Production Testing in Lorraine, France

European Gas Limited (EGL) has announced that it will resume its production testing of the Folschviller-2 well in the Lorraine region of France. The coal-bed methane well is the first of its type in France and utilises two separate horizontal drains in two disparate thick coal seams. The testing will operate under the Bleue Lorraine Permit granted to the company in November 2004.

The production testing will take place in the coming weeks and will seek to determine the parameters and lateral extent of the coal beds. The testing will encompass a dewatering period, followed by testing for flow and quality testing of the resulting gas.

The testing will enable EGL to ascertain the commercial viability of the gas in the Lorraine basin, as well as inform the company's future activities in the area.

The work has not been impeded by the recent changes to French legislation banning hydraulic fracturing in hydrocarbon excavation projects.