1.2.3.2 Coal seam gas

CSG activities in the Hunter subregion have generally been limited to a few exploration studies in the Hunter and Newcastle coalfields. According to Ward and Kelly (2013, p. 41) the main CSG exploration in the Hunter Coalfield was the AGL Hunter Gas Project focused on an area to the south of Singleton. AGL announced an initial reserve estimates of 142 PJ 2P (proved plus probable) and 271 PJ 3P (proved plus probable plus possible) in October 2010 (Ward and Kelly, 2013, p. 41). However, in 2013, AGL revised their Hunter reserves to 0 due to the effects of the NSW Government’s Strategic Regional Land Use Policy (AGL, 2013, p.2). Santos and Dart Energy also explored for CSG resources in the area between Murrurundi and Gulgong, drilling seven CSG wells on PEL 456 with promising CSG potential in the thickest net coal pay in the north Sydney Basin (NSW Trade and Investment, 2013). In the Nelson Bay area, Dart Energy completed four well-drilling programs that showed encouraging results. Consequently, a pilot program was to be proposed to assess the CSG potential of the area (NSW Trade and Investment, 2013). Dart Energy was also exploring for CSG in the Tomago Coal Measures of the Fullerton Cove area on PEL 458, in the northern part of the Newcastle Coalfield (Ward and Kelly, 2013, p. 41) but recently finished plugging a test drill site at Fullerton Cove and sold PEL 458 to another CSG firm, AJ Lucas.