In a statement today, Metgasco said the grant, made under the government’s Sustainable Regions Program, would be spent on appraisal drilling to expand its gas reserves.
The expanded reserves are aimed at supplying gas to the planned 30MW Richmond Valley power station and via a proposed pipeline to the eastern Australian energy market.
Metgasco managing director David Johnson said the government grant validated the regional significance of the Casino CSM project.
“The expansion of the Casino gas project and development of the Richmond Valley Power Station will have a significant impact on economic development in the northern NSW region,” he said.
Announcing the grant yesterday, Deputy Prime Minister and Minister for Transport and Regional Services Mark Vaile agreed that the projects would provide significant economic benefits to the local region.
“Access to pipeline gas and a sustainable, reliable local electricity supply will assist the growth of existing businesses as well as help attract new industry to the region,” he said.
Eastern Star Gas
Meanwhile, fellow NSW explorer Eastern Star Gas has placed the ninth and final Bibblewindi CSM well in the Gunnedah Basin project onto pump.
In its latest quarterly result, Eastern Star says the nine wells, located in PEL 238, have recorded good water production rates. It said six of the wells are already producing sufficient amounts of gas to run a gas-fired generator on each well.
Managing director Dennis Morton said the earlier than expected well interference supported reserves certification on a 160-acre spacing.
“The recording of interference early in the production life of these wells is also a function of the high permeability that the coal measure possesses,” Morton said.
“This is crucial not only to ensure a successful production pilot but also to maximising production and ultimate gas recovery in a future full-scale development.”
Once complete, Eastern Star plans to connect the production wells to the Wilga Park Power Station for electricity generation and sale.
The Bibblewindi wells are located in the southern portion of the 265 square kilometre Bohena Project Area, which contains up to 3700 petajoules of gas-in-place within two sets of coal measures.
