The 100%-owned facility will be fed by the 11.3 petajoules of proved and probable (“2P”) gas reserves in the company’s Coonarah gas field. ESG said the 1P reserves in the field were sufficient to feed the plant at full load for its 10 year Power Purchase Agreement with electricity distributor, Country Energy.

The Narrabri Power Project will comprise a gas gathering system to bring gas by 150mm buried steel pipeline from the gas field to the power station site at Wilga Park, 12 kilometres west of Narrabri.

The power station consists of 10 x 1 MW, containerised Jenbacher gas reciprocating engines and generator sets to be provided and operated under a lease/purchase arrangement by GE Energy Rentals. These are on route, arriving in Sydney mid month.

The company said all (16 kms) of the 150 mm coated steel pipe has arrived in Narrabri and the pipe will be strung out along the pipeline route with trenching to commence after Easter.

“Financial close for the $3.5 million of project finance is near with the final outstanding procedural item being registration of the pipeline easement on landholder titles,” said the company.

It said in addition to the gas fired power station project the company was finalising equipment and services for the three conventional exploration wells as well as a full CBM development program, including vertical and horizontal drilling with some fraccing thrown in for good measure.