The CSM junior now plans to prove sufficient reserves for its proposed 30MW power plant at Casino and continue its horizontal drilling program to increase productivity and demonstrate commercial flow rates.
The company also intends to undertake a step-out core drilling program to obtain additional 2P reserves.
Discussions are currently underway with partners for the joint development of downstream power and gas infrastructure, as well as potential gas supply customers, Metgasco said.
Managing director David Johnson said the initial reserves mean the Clarence Moreton basin has the potential to become a major new gas producer on Australia’s east coast.
“Metgasco has mapped the location of the productive Walloon coal seams within the Clarence Moreton basin and believe that we have access to approximately 90% of the potentially productive CSM area,” he said.
“Metgasco is well placed to supply gas and gas-fired electricity to one of the fastest-growing energy markets on the eastern seaboard.”
Metgasco said the assessment of 2P reserves applies to the Richmond seam section of the South Casino pilot project and does not address potential gas contained in five additional prospective coal seams in the area.
Meanwhile, the 3P reserve assessment applies to an area of the permit over which the
company has seismic control and where it has identified six potential gas-producing coal seams. This area represents about 60% of the tenement, with the remaining area of PEL16 untested.