Revolving around the Coonarah Gas Field in PEL 238, ESG has secured contracts for the supply of gas thereby establishing itself as a new regional supplier.

The company reached an agreement with major regional electricity retailer Country Energy for the purchase of all electricity produced at the Narrabri Power Project.

The project is run by the especially created ESG subsidiary Narrabri Power Limited, which will act as owner and operator, and comprises a production lease covering the Coonarah Gas Field, in PEL 238, NSW and a new 10MW gas fired power station at West Narrabri.

The company received a series of tenders for the design and construction of the Coonarah gas gathering system that includes a 20km pipeline from the gas field to the 10MW power station located in West Narrabri. Arrangements with the preferred tenderer are expected to be completed in August.

An application was also lodged with the NSW Department of Mineral Resources to register ESG as the sole owner of the 9,100sq.km PEL 238, Gunnedah Basin, NSW. The company subsequently lodged an application for a Production Lease over the Coonarah Gas Field.