In September 2020 State Gas was awarded 1414km2 of new acreage by the Queensland Government, contiguous with the Company’s Reid’s Dome Project (PL 231). The new ATP 2062, (Rolleston-West) contains targets for both coal seam gas (CSG) and known conventional gas within the permit area. It is not subject to a domestic gas reservation.
The Bandanna coal measures, a proven resource for CSG at Mahalo to the north east and the Arcadia Valley to the south, are extensive across ATP 2062. The area also contains several promising conventional targets identified by historical seismic and drilling.
Being contiguous with Reid’s Dome, Rolleston-West will enable the Company to integrate activities and undertake a unified development across both areas. Facilities and infrastructure can be shared and optimally located and economies of scale can be obtained. The new acreage adds substantially to the critical mass and upside potential of State Gas.
Gas from both areas will be exported through a single pipeline, currently being planned by State Gas. The Company has identified two potential routes for an export pipeline, one of which passes through ATP 2062, and has obtained Petroleum Survey Licence 2049 which traverses a major part of the new permit and will enable on-the-ground investigations of both routes (refer map).
Historical seismic over the eastern part of ATP 2062 has enabled the Company identify targets and move immediately to drilling. The Company is planning to drill two wells targeting the Bandanna Coals at depths between 300 – 700 metres – the traditional sweet spot for CSG. The locations have been selected due to two plunging noses which may enhance permeability.
Both Reid’s Dome and Rolleston-West contain CSG and conventional gas – a combination that offers the potential to maximise flexibility in a volatile gas market and optimise returns.
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