The statement was part of a report designed to boost interest in the current tender for acreage over the Vasse Shelf region.

Coal bed methane (CBM) was the focus of the report, with the resource located between Margaret River and Augusta. The area is considered to be ideal for development due to the well-developed regional infrastructure and close proximity to the metropolitan gas markets.

"Jointly compiled by industry and state government geologists and engineers, the report suggested the Vasse Shelf has considerable promise in becoming a significant gas generator," said State Development Minister, Clive Brown.

"It could also provide an alternative energy source for industries operating in the South-West," Brown said.

Acreage over the Vasse Shelf is currently available through the Department of Industry and Resources Designated Area Gazettal Scheme (Blocks L03 and L03-3). The closing date for acreage over the prospective area is 4pm Thursday, September 18.