SGC needs to have drilled 25 wells in order to qualify for a major finance deal from Westpac. Having sunk over 20 it has now has sufficient funds to drill the remaining wells.
Sydney Gas also said it planned to bring on three production wells delivering coalbed methane to the Ray Beddoe Treatment Plant for the Camden Gas Project. The first core hole to be converted into a production well will be Kay Park-1. This would be followed by the completion of two further wells, Kay Park-2 and Kay Park-3.
As for the Hunter Gas Project, Sydney Gas said it would begin drilling and completing two core holes in PEL 4 and PEL 267 next month with the intention of establishing a production pilot project in the northern part of the Sydney Basin this year.
Sydney Gas has also been busy consolidating its PEL equity holdings. Recently, Pacific Power transferred its 40 per cent interest in PEL to Sydney Gas thereby giving Sydney Gas 100% control of all PELs in the Sydney Basin.
