A Sydney company is investing millions of dollars in exploration in the hope areas around Griffith could be

the site of commercial gas and oil reserves.

Energetica Resources is prospecting for petroleum reserves in an area totalling about 44,000 square kilometres stretching from Ivanhoe to Coleambally.

Recent surveys have shown positive signs for the chances of finding gas reserves in the area, according to Energetica Resources’ Len Diekman.

“Three years ago, the Department of Primary Industries did a seismic survey up around Griffith, and the results of that survey were very encouraging,” he said.

“We think there’s potential for both gas and oil, so we’re pretty keen to do some exploration in the next four years.”

If successful in finding oil or gas, the economic impact on Griffith and surrounding areas could be immense, according to council’s economic development manager Stephen Joyce.

“If they were able to find any gas or oil, then it could have a great impact on Griffith,” Mr Joyce said.

“That’s something that would obviously be good for us, to have an industry that’s drought-proof, and it brings a lot of industries with it.”

The company has a four-year licence to explore for gas and oil, but Mr Diekman believed it should be enough time to determine whether the area had significant reserves.

“Initially we’d be looking at some of the old reports for some of the previous exploration, seismic and aeromagnetic surveys, and if are reasonably encouraged, we’ll start drilling some core holes,” he said.

“If the early work is encouraging,

then we’ll spend more, it’s a stage of processes.”

Though the area is far from well-known for its natural resources, Mr Diekman said there had been very little exploration to find out its potential.

“NSW for many years has been regarded as a poor cousin to Queensland and South Australia in terms of exploration for gas,” he said.

“But only a few years ago they wouldn’t have thought they’d be developing coal seam gas in some parts of northern NSW, but they are now.”

Mr Diekman mentioned former coal mining operations in Urana as evidence south-western NSW had mining

potential.