PEL 238
Current Approvals, Leases, Licences and Activities
Since Eastern Star commenced its gas exploration activities in the Narrabri area in 2001, the following approvals, leases and licences have been sought and/or maintained.
Petroleum Exploration Licence (PEL) 238
Since the renewal of the PEL238 title in August 2001 by Eastern Energy Australia Pty Ltd for a period of 6 years, the Proponent acquired its 100% interest in the licence through the completion of exploration, drilling and development appraisal activities at various locations in the Narrabri region including the Coonarah Gas Field. This licence undergoes the renewal process at the end of each 6 year title period by the Department of Primary Industries – Mineral Resources provided Eastern Star has carried out the level of activity consistent with stated permit commitments. It was most recently renewed for an additional 6 year period in November 2007.
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Petroleum Assessment Lease (PAL) 2
The application for a Petroleum Assessment Lease over the 265km2 Bohena CSG Project Area was submitted by the Proponent on behalf of the Joint Venture to facilitate the economic and technical assessment of the coal reservoir and the estimated CSG reserves. The Petroleum (Onshore) Act 1991 states that:
S33 Rights of holders of assessment leases
The holder of an assessment lease has the exclusive right to prospect for petroleum and to assess any petroleum deposit on the land comprised in the lease.
Note. An assessment lease is designed to allow retention of rights over an area in which a significant petroleum deposit has been identified, if mining the deposit is not commercially viable in the short term but there is a reasonable prospect that it will be in the longer term. The holder is allowed to continue prospecting operations and to recover petroleum in the course of assessing the viability of commercial mining.
The PAL was granted over the Bohena CSG Project Area on 20 October, 2007 for a period of 5 years.
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Petroleum Production Lease 3 incorporating the Coonarah Gas Field
The Coonarah Gas Field, located approximately 20km west of the Narrabri Township, was fully appraised by drilling in 2001, and has independently accredited 2P reserves of 11.3 PJ. Natural gas is currently being produced from the Early Permian Maules Creek sandstone reservoir to fuel the Wilga Park Power Station.
In December 2003, the NSW Minister for Mineral Resources granted Narrabri Power Limited, as the economic entity’s nominated grantee, Petroleum Production Licence 3 (“PPL3”), covering the Coonarah Gas Field and an umbilical easement connecting the field to the power station site at Wilga Park, for a 21 year term commencing from first production.
The installation of the gas gathering system linking the Coonarah Gas Field with the power station occurred during early 2004 under the development consent of the Narrabri Shire Council.
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Wilga Park Power Station
Development consent for the construction and operation of the Wilga Park Power Station was issued to Narrabri Power Limited by Narrabri Shire Council on November 14, 2002. The Narrabri Power Project has been developed by the Company to commercialise the stranded gas reserves at the Coonarah Gas Field. The Project is the sole undertaking of the Company’s wholly owned subsidiary Narrabri Power Limited (“NPL”) and comprises:
NARRABRI CSG UTILISATION PROJECT click here
