SGC opens the books on the Camden Gas Project, wants more NSW Govt. support

Against a backdrop of increasing interest and activity in Australia's coalbed methane industry, and with an eye to keeping investors and analysts both informed and onside, Sydney Gas Company has decided to open the books on its 300-well Camden Gas Project with a release to the market of its "Pro Forma Development Planning Document".

Sydney Gas told the market it believes that the economic scoping in the document (based on the variables and assumptions stated) should enable institutions, analysts and investors to independently assess the potential performance of the company.

In other company news, Sydney Gas is currently drilling three wells in a high production fairway on the Kay Park property near Camden in attempt to enhance and optimise production. The company said once the wells have been fracced and completed they will be connected to the Ray Beddoe Treatment Plant.

A coring program is also underway in the Hunter Valley region of the Sydney Basin where Sydney Gas has joined forces with Bulga Coal Management to assess the feasibility of horizontally extracting coalbed methane from Bulga's coal mines.

As for the big news that CBM gas will fuel the proposed Townsville power station, Sydney Gas boss Dr Bruce Butcher applauded the Queensland Government's decision and urged the NSW Government to follow its lead and support this burgeoning industry. "Its now up to the NSW Government to follow Queensland's lead," Dr Butcher said.

"Our current drilling and coring programs in the Camden and Hunter Valley regions of the Sydney Basin are designed to take Sydney Gas to the next level and should encourage the New South Wales Government to start providing the levels of support that the coalbed methane industry in Queensland seems to enjoy".