Exxon pulls out of on-shore gas

EXXONMOBIL is reported to have ended the Victoria Natural Gas joint venture it formed with Ignite Energy Resources in mid-2012.

IER, has estimated that its exploration lease EL 4416 hosts 3.7 trillion cubic feet of natural gas deeper lignite seams within EL 4416 contain biogenic natural gas within the lower-rank coal.

Exxon had a 10 per cent stake in the venture, and IER had planned to drill exploration wells that did not require fracking, in 2013 and 2014 to see whether the gas could be profitably exploited.

No wells were drilled because of bans put in place by the previous Victorian Coalition government.