THE FUTURE of a gas drilling project is in limbo after an exploration company has failed to find enough gas for commercial production.
Pure Energy Resources is spending more than $1 million on exploratory drilling for coal seam gas at Fingal in Hobart.
The project involves drilling wells into underground coal resources and pumping out water which then releases gas.
The company recently posted results showing a low gas content, which has thrown the site’s value into doubt.
Pure Energy hopes underground reserves will pick up over the course of time, and will reassess the site when final results are released by December 2008.
The company says its focus could move to tenements in York Fields in the Midlands and closer to Hobart.
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