Media Release

Coal seam gas exploration drilling to commence

2 February 2010                                                                                                            

Solid Energy will shortly extend its Taranaki coal seam gas exploratory drilling programme to focus on the northern part of the Stratford District. 

Three exploration holes will be drilled in the Tahora – Tangarakau area during February and March.  A single drill rig, similar to those used for water well drilling, will carry out the work with the permission of individual landowners and consents from the Stratford District Council.

The drilling will further define Solid Energy’s coal resources and the potential for coal seam gas.  Four similar exploration holes were previously drilled by Solid Energy in the Taranaki near Mt Damper and Waitaanga last winter.

Coal seam gas – also known as coal bed methane - occurs naturally in coal seams. It is extracted under pressure in a similar way to conventional gas and can be used for industrial energy, electricity generation or to supplement existing gas resources. While use of the gas is relatively new technology, it is already a significant contributor to gas supply in the United States and Australia.  Coal seam gas is estimated to have the potential to add 5% to 10% to New Zealand’s gas supply.  

Solid Energy has been investigating coal seam gas as a source of energy since 2005.  It has successfully generated electricity using a gas generator from a six well appraisal site in the Waikato, the first time electricity has been generated this way in New Zealand. Individual wells are connected with low pressure underground pipelines.  Each well can last 10 to 15 years.