The approval is the first since Sydney Gas instituted its new leadership and management structure.

Sydney Gas CEO, Andrew Purcell said Sugar Loaf Farm was leased by the Department of Planning to the Sugar Loaf Riding School.

“Both the land owner and lessee concur that the agreed drilling program and completion schedules for the wells will not interrupt the Riding School Business,” he said.

Two multi-completion wells on Sugar Loaf Farm are expected to be drilled shortly, to about 700m, intersecting the Bulli, Balgownie and Wongawilli coal seams.

Following drilling and fracture stimulation, the two wells will be evaluated and their flow rates assesed.

Sydney Gas was negotiating with other government agencies that were significant land holders or custodians of other sites in the area, to secure further wells in Petroleum Production Lease 4 of the Camden Gas Project, according to Purcell.