We are exploring, appraising and developing the vast gas resources of the Clarence-Moreton basin in northern New South Wales.  Covering an area of approximately 1.5 million acres, the basin is prospective for both coal seam gas and conventional hydrocarbon resources. Metgasco has already established a large certified natural gas reserve position in New South Wales gas with the following gross reserves in PEL 16.

Metgasco Gas Reserves are Independently Certified by MHA Petroleum Consultants (Denver). All reserves are from coal seam gas and so far these have been recognized over less than 5% of the Company's acreage position. Metgasco is at the very beginning of our conventional exploration program.  We are excited that the first well we have drilled, Kingfisher E1, delivered a discovery.

Metgasco applies advanced drilling and production techniques to extract coal seam gas.  We produce gas from certain seams by drilling a vertical well to between 300 to 700 metres from the surface.  The well is then cased to prevent any water from upper acquifers leaking into the well.  We then drill horizontally along the coal seam to a distance of up to 1,000 metres.  The well is then lined with perforated steel casing.  Water and gas are then pumped from the well and separated at the well head.  This process of taking water out of the coal seams lowers the pressure in the well and allows gas to flow to the wellhead.

Gas from natural gas reserves, is a clean, low greenhouse gas emission fuel.  When it is used to generate electricity it produces approximately 45% of the emissions produced by coal fired electricity generation.  As Australia moves to a more carbon constrained economy, the use of gas as a transitional fuel will become increasingly important.

With its growing certified natural gas reserves close to energy markets and plans for electricity generation, Metgasco is planning on becoming a major supplier of gas to eastern Australian energy markets.
Metgasco are developing the Lions Way Pipeline to link our gas field in Casino to customers based in south east Queensland.

The pipeline is a core infrastructure investment which will enable the development and commercialisation of gas resources in northern NSW.  As Australia moves towards a more carbon constrained economy, the development of natural gas supplies close to energy markets will become increasingly important.

The project will establish a major new industry in the north coast of NSW.  Approximately 180 new jobs will be established as a result of the project.

The pipeline is approximately 145 km in length.  It will be buried for its entire length, typically to depths of 900mm - 1,500mm.  A detailed assessment of any potential environmental impacts from the construction and operation of the pipeline is currently underway.

We are well advanced in developing power projects to supply New South Wales with power.  Our first project is a 30 MW power station which will supply gas fired power to the town of Casino where our field is operated.  The State Government of New South Wales has declared this project to be a Major Project.