Boost for methane industry

AJ Lucas Group, at Ryde, which owns the biggest coal-seam methane drilling business in Australia, has signed a heads of agreement with Sydney Gas for two drilling rigs, its expertise and a new chief executive, Andrew Lucas, an AJ Lucas director who has resigned his executive position with the company, to develop its coal-seam assets. AJ Lucas is spending $20 million to take a 15 per cent share in Sydney Gas with the option to take its stake to 25 per cent if it meets targets for expanding the company’s reserves over the next three years.

Mr Lucas said the Hunter region had huge potential for coal-seam producers while the Sydney area was also a huge market for modern technology operations. Sydney Gas, a coal seam explorer, is drilling in the Camden area.