CSG well in the pipeline

RED SKY Energy is on track to have a pilot coal seam gas well approved by Christmas and it could have the site "put on production" within 15 days, according to its managing director Rohan Gillespie.

The regulatory approval process for the Talma well, situated half way between Casino and Grafton just off the Summerland Way, is under way according to Mr Gillespie.

The original documents including a 110-page Review of Environmental Factors have been submitted and the regulatory authorities have already replied and asked for further documentation.

This information will be forthcoming and Mr Gillespie was expecting approval for the pilot well "this side of Christmas," he said.

Once approved, the plan is to drill out the blocked test hole over a 90m interval from 480m to 570m.

Upon completion of drilling, a wellhead and flare will be installed and the "well put on production" according to company announcements.

This could take no more than 15 days according to Mr Gillespie's calculations.

But first a drilling rig will need to be found, which he said are quite scarce.

While CSG was becoming an increasingly sensitive issue politically, it was not a particular concern for Red Sky Energy he said.

The company was always focused on environmental and sustainability outcomes he said.

He also stressed if regulation was to block CSG extraction in NSW, the state would miss out on a low greenhouse gas emissions technology.

If regulation becomes too strict NSW would become dependent on CSG resources from elsewhere, he said.