Westralian Gas & Power Ltd (WGP) and associated company Red Mountain Pty Ltd currently hold the majority of the petroleum licenses over the prospective coal seams in Western Australia – a total ten Petroleum Exploration Permits and two Mineral Exploration Permits.
These are in two areas: in the south west of Western Australia centered around the Busselton -Margaret River district, and north of Perth in the Mid-West, the hub of the State’s new resource district.
At present WGP is the only participant in the Coal Seam Gas industry in this vast State. The Company is committed to developing an economically viable energy resource.
The Company has conducted a number of comprehensive seismic survey programs across many of its permits. Drill sites have been identified and applications submitted. The drilling program will facilitate study of the underlying geology. The Company has worked closely with Bunbury Drilling Company to effect modification of their drilling rigs to comply with existing requirements.
WGP is currently exploring the Company’s leases in the onshore Perth and Collie Basins. Work is being undertaken to commence Drilling. This will add new drive to the Company’s exploration activities over all of its Onshore Permits.
Drilling to commence and future development
Establishment of a producing Coal Seam Gas source, including well development and gas production testing, can take several months. In general, once a flow of gas is established from a well it is expected to continue for at least 7 to 12 years.
The discovery of a sufficient quantity of Coal Seam Gas will give the Company the option to establish a series of power stations throughout the area in order to supply electricity, or to negotiate the supply bulk gas through one or more take-off agreements, or both.