The new power plant would be supplied by coal seam gas (CSG) from the company’s Blackwater CSG Field, providing early financial returns from the company’s gas assets. It is expected to generate low emission electricity supplied to the national grid for domestic and industrial users.
John Stefani, CEO (commercial), Bow Energy, said: “This will give Bow near-term cash flow while we further increase our currently uncontracted reserves and evaluate longer term supply opportunities both for export and other domestic gas markets.”
The Blackwater power project will be constructed by Clarke Energy under a turnkey construction contract utilising lean burn, GE Jenbacher gas engines with expected completion in early 2011.
Clarke also constructed Arrow Energy’s similar Daandine Power Station in 2006. Bow Energy anticipates that the power generation plant will require approximately two petajoules per annum of gas.
Bow Energy has expanded its CSG reserves from its Blackwater field in the Comet block, having already certified 886 petajoules of 3P gas reserves within the Rangal Coal Measures and an additional 330PJ of 2C contingent resources within the Rangal coal seams.
Gas requirements for the power station represent approximately 5% of the available 3P reserves currently defined. A further reserve increase from the deeper Burngrove Coal Measures is anticipated later this year.
The company is currently targeting 250PJ of certified 2P gas reserves from its Blackwater field by the end of 2010, having already exceeded its 2010 3P target of 850PJ.
