Intrepid CSG explorers

The Australian Production and Exploration Association (APPEA) has released figures showing a huge surge in coal seam gas production.

The Australian Production and Exploration Association (APPEA) has released figures showing a huge surge in coal seam gas production.

WestSide Corporation and Queensland Gas Company (QGC) have committed $8 million to coal seam gas exploration in the Bowen Basin.

According to Westside, the venture is designed to certify reserves at the Tilbrook pilot and also to confirm the existence of further gas-bearing coal to the north of the existing pilot.

WestSide’s recent gas-in-place estimates suggest that almost 3,000 billion cubic feet of gas could be contained within the coal seams in the area.

According to APPEA, gas production for 2008 reached 142.9 billion cubic feet, a 39.1% increase over the previous year.

Coal seam gas now represents 13% of Australia’s domestic gas supply, as sales in 2008 reached 917.5 million cubic feet.

WestSide and QGC will also launch a new exploration program to assess the Bald Hill and Mount St. Martin areas to the north of the Tilbrook pilot area.

The new explorations are an opportunity for WestSide to add to its already considerable target gas reserves in the northern Bowen Basin, WestSide chairman Angus Karoll said.

“With almost 3 trillion cubic feet of gas-in-place in this part of the tenement, the 2009 program has the potential to confirm the value of this area,” he said.

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