If successful, SGC hopes to access some $22.5 million of a potential $80 million Westpac debt package deal for the company.

Westpac has agreed to provide a $22 million tranche to drill an additional 24 wells once SGC has 26 wells producing gas. Currently, the company has 18 wells that supply gas to the Australian Gas Light Co for reticulation in the Camden area.

Westpac has indicated it is willing to provide up to $80 million to help the company reach its target of 300 wells within three years.

Access to the Westpac funding is however dependent on the success of the convertible note issue to boost the company's coffers to drill and bring the extra eight wells into production.

The chief executive officer of SGC, Dr Bruce Butcher, said the Camden project has demonstrated the company's ability to produce commercial coalbed methane, but many more wells were needed to achieve sufficient volumes for the project to be self-sustaining.

While the company's credibility has grown since being awarded 'State Significant Development' status by the NSW Government, many in the market remain sceptical about its ability to become a significant supplier due to technical issues relating to production maximisation.