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AGL Energy Limited (ASX:AGK) has scored state government approval to use fracking technology to identify coal seam gas at Gloucester in New South Wales.The energy producer says it can now start the Waukivory Pilot to fracture stimulate and flow test four existing has wells located in the Stage 1 area of the Gloucester Gas Project.AGL believes the Gloucester Gas Project has the potential to secure a local supply of gas for New South Wales and does not anticipate exporting the product outside of the state.Managing Director and CEO Michael Fraser says the project could possibly boost locally produced gas to about 20 per cent from current levels of less than 5 per cent.AGL Energy reported a net profit of $261 million in the first half of the 2014 financial year.
