Boyne River has got the goods on gas

GLADSTONE industry may soon be able to access a new energy source from close to home.

Arrow Energy yesterday announced early positive results from a drilling for a gas field project in the Boyne River, 60 kilometres from Gladstone.

"Arrow advise that this was an exceptional result, both in terms of seam thickness and flow rates from a small diameter core hold and suggests high potential rates for wells drilled and completed for production,'' the company said in a statement yesterday.

"Arrow plans to drill one or more production wells as a pilot on the field in the third quarter of 2005.''

Arrow Energy chief executive officer Nick Davies said the proximity of the find to Gladstone would make it particularly attractive to local industry.

"We have previously talked to industry and they're extremely interested,'' Mr Davies said.

"But they obviously won't commit themselves until (we're sure) there is a source there.''

He said the source's short distance from Gladstone would also help make the project economically viable.

Mr Davies said if future testing produced favourable results, he hoped production could begin by early 2007.

The coal seam methane gas is captured in several overlaying layers of coal.

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