INITIAL testing of the quality of gas at Metgasco’s Kingfisher E1 site near Casino has revealed high levels of methane with little impurities, the company managing director David Johnson said yesterday.
The low level of impurity means the cost of extracting the gas will be relatively low.
It follows an announcement last week that the first stage of the testing program at the well had confirmed the company’s initial claim it was a major find, and ‘the first significant discovery of natural gas in NSW in over a century of exploration’.
“This test result confirms Metgasco’s confidence in the Clarence Moreton Basin as an under-explored basin with substantial potential for both conventional hydrocarbon resources and coal seam gas,” Mr Johnson said last week.
“Metgasco intends to accelerate our commercial opportunities, and the mix of coal seam gas and conventional gas in a strategic location provides an exciting base for strong growth.”
The current testing of samples found the gas was high in methane and low in nitrogen and carbon dioxide.
Mr Johnson said yesterday drilling at Kingfisher would continue for some time as they wanted to test five to seven horizons, or levels, within the well.
The North Sydney-based company reported in December there was enough methane gas at Kingfisher, near Casino Airport, to power 30,000 homes for at least 656 years.
Mr Johnson said yesterday the company had recently been in discussions the NSW Government to gain approval for a $42 million gas-fired power station in Casino that will take 18 months to build and employ up to 60.