State Gas-Santos JV bags two gas areas in Queensland
Sydney-listed State Gas, in a joint venture with Santos, has been appointed the preferred tenderer of two new areas under the Queensland government's latest Petroleum Land Release Programme, the company said on May 17.
The two new gas areas, PLR2021-1-2 and PLR2021-1-3, are adjacent or in close proximity to both State Gas' existing Reid's Dome and RollestonWest projects, and Santos interests to the east. The new blocks, a combined 1,035 km2, will increase State Gas' acreage position by approximately 60%, to 2,630 km2, with the potential to significantly increase its resource position, the company said.
Both blocks are highly prospective for coalbed methane in the Bandanna Formation, in production on adjacent acreage, and which State Gas is currently testing at its Rolleston-West project. The blocks also contain targets for conventional gas. Neither block is subject to domestic gas reservation, enabling gas produced from the areas to be sold into any market.
Under the joint venture, State Gas will hold 35% of the new permits, with Santos holding the remaining 65% and appointed operator.