Three exploration holes will be drilled in the Tahora – Tangarakau area during February and March 2010. 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 is expected to further define Solid Energy’s coal resources and the potential for coal seam gas. Four similar exploration holes were previously drilled by the company in the Taranaki near Mount 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.
Solid Energy has been investigating coal seam gas as a source of energy since 2005. It has generated electricity using a gas generator from a six well appraisal site in the Waikato. Individual wells are connected with low pressure underground pipelines. Each well can last 10-15 years, the company said.
