Location
Metgasco holds interests in three tenements in the Clarence Moreton Basin in New South Wales. The Company operates from the town of Casino which is approximately 70 km from the Gold Coast. The Company's projects are well located to supply gas and gas fired power to northern New South Wales and southern Queensland.
The area that the company is seeking to supply gas or gas fired power into is an area which has no local electricity generation or gas supply. It has the attraction of being one of the last energy market "gaps" on the east coast of Australia with one of the fastest population growth rates in the country.
Tenements
PEL 16 - Metgasco holds approximately 96% of PEL 16 which has an area of approximately 833 km2. CS Energy has farmed in to the CSM rights within area of PEL 16 comprising 3 graticular blocks (233 km2). CS Energy has earned a 15% interest in these blocks and has the right to take the interest to 50% in these blocks by completed a second stage farmin expenditure of $92.5 million.
PEL 13 - Metgasco has a 75% interest in the coal seam gas rights in PEL 13 and a 50% interest in the conventional hydrocarbon rights. The area of this PEL is approximately 1,654 km2. Metgasco has drilled one core well in this tenement and completed a targeted seismic program. Additional exploration drilling will be completed in 2008/09.
PEL 426 - Metgasco has a 50% interest in the coal seam gas and conventional hydrocarbon rights in PEL 426. The area of this PEL is approximately 3,513 km2. Metgasco has not undertaken any drilling in this tenement. A seismic program has recently been completed and additional exploration drilling will be completed in 2008/09.
Projects
To capture value from our growing gas reserves, we are focused on gas sale and gas commercialisation opportunities.
Gas to Swanbank Power Station (owned by CS Energy)
We have established a joint venture with CS Energy (owned by the State Government of Queensland) to deliver 18 Petajoules of gas per year to the Swanbank Power Station in south east Queensland.
Lionsway Pipeline
In order to deliver gas to the Swanbank Power Station, Metgasco is developing the Lionsway gas pipeline to link our field in Casino to customers based in south east Queensland.
Richmond Valley Power Station
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.