"With the granting of the development approval, and the independent reserves report announced in February 2002, the company will satisfy the important pre-conditions for the granting of a Petroleum Production Lease by the NSW Minister for Natural Resources," ESG said.
The emerging conventional player said it is now proceeding to finalise the detailed design of a 20km pipeline from the gas field to the western outskirts of Narrabri, and the selection of electricity generating equipment.
Eastern Star added it is also finalising a long-term power purchasing agreement with the major regional electricity retailer Country Energy.
The Coonarah Gas Field (PEL 238) is the first commercial gas field in the NSW with independently accredited proved and probable reserves of 11.3 petajoules.
