Emerging Queensland natural gas explorer AusGasCo has been awarded preferred tenderer status for two prospective gas blocks in the state’s world-class natural gas region.
The areas awarded total 877km² (217k acres) and are close to processing and pipeline infrastructure, with multiple transmission options to supply the structurally constrained east coast market. They are south-east of Injune (ATP 2071) in the Bowen Basin, and south of Taroom (ATP 2070) in the Surat Basin.
ATP 2071 is immediately adjacent to AusGasCo’s Flying Squirrel Project tenures (ATPs 2064 and 2065, 100% AusGasCo) and adjoining APLNG’s Spring Gully development. Multiple gas transmission pipelines traverse the area. An Australian market supply condition applies to any future production from ATP 2071.
ATP 2070, known as Project Chrysalis, is AusGasCo’s first asset in the Surat Basin, with resource potential in the prolific Walloon Coal Measures production fairway. More than 780 terajoules per day of gas processing capacity is in the vicinity of the area.
The two exploration tenures have an initial six-year term and include a four-year activity based initial work programme. Minimal capital expenditure is required in the first tenure year.
Chairman Frank Connolly said AusGasCo was proudly contributing to diversity and efficiency in Queensland’s petroleum industry. Discovering and unlocking new sources of natural gas for supply to the Australian market will ultimately put downward pressure on the domestic gas short term trading market, help preserve Australian manufacturing industries and benefit the Queensland community through job creation whilst extending the economic life of the gas infrastructure constructed during the past decade.
“We’re delighted to be appointed as preferred tenderer for these natural gas tenures, which takes our total tenure portfolio to 1029km² (254k acres) in one of the world’s most prospective onshore natural gas regions,” Mr Connolly said.
“It is also pleasing to be recognised for our professional approach, deep technical expertise and experience in proving up and converting prospective resources to reserves in Queensland.”
AusGasCo is operated by experienced directors who were central to the growth of two companies that have helped build Queensland’s natural gas sector over the past 22 years: Queensland Gas Company Limited (QGC); and Senex Energy Limited.
All were involved in initial exploration and development for QGC, which was acquired by BG Group in 2008 for A$5.6 billion and resulted in one of Australia’s biggest capital infrastructure projects: the US$20.4 billion Queensland Curtis LNG Project, now majority owned by Shell plc.
AusGasCo Chairman Frank Connolly was a director of QGC; AusGasCo Director Dr Steven Scott was Head of Exploration and the leader of its pioneering CSG exploration program; and AusGasCo Director Brent Glassborow was Head Operations geologist and later global Research and Development management for BG Group.
At Senex, which was this year acquired for A$900 million, Mr Connolly was Company Secretary and Legal Counsel, and Dr Scott was Head of Exploration.
The AusGasCo board extended its appreciation to advising and contributing parties Morgans, Silver City Drilling, MPC Kinetic, Nikki Acornero, Fendley Consultancy, RSMA, CNC Management and Terrex Seismic.
