The freeze has come a little over a month after the State government approved an extension of AGL’s Petroleum Exploration Licence (PEL) in the Gloucester Valley for six years and granted the company permission to frack four wells as part of its Waukivory Pilot Program.

Energy and Resources Minister Anthony Roberts said the freeze on PEL and Petroleum Special Prospecting Authority applications would run until September 26, 2015.

The government introduced a six month freeze on applications on March 26.

Mr Roberts said the extended timeframe would allow the Office of Coal Seam Gas (OCSG) to complete its comprehensive examination of current PELAs and further assess the application process for petroleum titles.

“The former Labor Government handed out 39 Petroleum Exploration Licences in a careless and clumsy fashion with little oversight. NSW deserved better,” he said.

“The regulations (the State government has introduced) ensure that gas extraction from coal seams is done in a way that is safe and has minimal impacts on the environment and other industries.

“The framework also ensures that companies involved in the NSW gas industry meet the highest standards of technical expertise and financial capability to undertake exploration.”

Australian Petroleum Production and Exploration Association chief operating officer Paul Fennelly described the announcement as “extraordinary”.

He pointed to the federal government’s energy green paper released on Tuesday that “specifically flagged the need for an urgent uplift in NSW gas production”.

The coal seam gas industry has also questioned the timing of the announcement, saying it pre-empts a long-awaited report by NSW Chief Scientist Mary O’Kane into the industry, due to be released next Tuesday.

Mr Roberts said the NSW government has refused 10 PEL applications since March.

The Lock the Gate Alliance said the 12-month extension to the freeze was welcome, but would have no effect on CSG projects in Gloucester or Narrabri.

“The idea that there is too much control of this unsafe industry in NSW is ludicrous,” Lock the gate spokesman Phil Laird said.

There is currently no protection at all for important water resources or farmland in the north west, the Northern Rivers or in Sydney’s drinking water catchment.

“In Gloucester and Camden, there are coal seam gas wells just a few hundred metres from people’s homes.

“We would like to see the review of petroleum licences extend to identifying no-go areas for mining in precious water resources, important farmland and special bushland.”