The Camden partners (Sydney Gas is the operator with a 50% interest while AGL owns the remaining stake) have embarked on an aggressive exploration program to increase the CSM reserves base and plan to spend about $34 million from now until 2008, according to Sydney Gas.

The company said production of Camden gas continued to increase and that peak production was anticipated within the next three years. Current monthly production rate now exceeded 4.4 petajoules per year, on an annualised basis.

That increased production over the last year had led to substantially higher sales revenue, with total Camden gas sales for June being $1.18 million.

Sydney Gas said a total of 67 Stage 2 wells had now been drilled, 64 of which were completed and 57 put into production into the Rosalind Park Gas Plant.

Total Stage 2 production for June was 314,206 gigajoules, slightly higher than the previous month on a 30-day average basis, with the best producing well averaging 911GJ per day.

Stage 1 had eight producing wells during the month, with total production being 71,169GJ.

Drilling of two surface holes were completed during the month. The company now aims to drill two directional wells – part of the current five directional well program – during July and August. About 50km of seismic data had been recorded, out of the total planned 100km.

The Camden joint venture continued to develop methods to increase the productivity of the Stage 2 wells by improving dewatering methods and by seeking to add production from deeper seams such as the Balgownie and Wongawilli.

Sydney Gas said no significant field activities were carried out in the Hunter Valley (SGL 50% interest) during June, but in-house technical studies continued to identify optimum corehole locations for future drilling.

In-house technical studies also continued at the Merriwa project (Sydney Gas holds a 50% interest) to identify optimum corehole locations for future drilling there.