“Netherland, Sewell & Associates is well advanced in its independent review of gas reserves for the Narrabri coal seam gas project in northern New South Wales,” Eastern Star said.

The reserves upgrade is intended to underpin the supply of 40 petajoules of gas per year to a new northern NSW power station proposed by Babcock & Brown.

Based on two production pilot programs – one with three wells, and the other with nine – the Narrabri project area already has 59PJ in proven and probable reserves.

But the project, in PEL 238, covers 9100 square kilometres and the pilot programs represent less than one percent of this area.

“About two-thirds of PEL 238 is underlain by coal that contains one of the largest onshore natural gas accumulations in Australia, alone totalling 17,000 petajoules,” the company said.

The Narrabri project partners are Eastern Star (operator and 65%) and Gastar Exploration (35%).