Exploration company gets green light for gas search
Brisbane based oil and gas exploration company Galilee Energy has been awarded 100 percent ownership and working interest of a large plot of land just east of Springsure.
In the company's quarterly ASX report, it announced the deal would come into effect on February 1.
It comes as part of a recent release of new petroleum resource areas by Queensland Government's Department of Natural Resources, Mines and Energy.
The tenure is titled ATP 2050 (Authority to Prospect) by DNRME and Galilee has named the block the Springsure Gas Project and will carry out exploration over a six-year period
"Galilee Energy will execute a staged and technically detailed exploration program to confirm the presence of material gas resources for future maturation to eserves and production into the eastern Australian markets," the report read.
The plot spans 1,425 sq km through the northern Denison Trough, adjacent to the Northern Denison conventional gas fields and only 25km west of the Mahalo coal seam gas development.
The Springsure region already hosts multiple coal seam gas and conventional gas operations.
"The primary target at the Springsure Project is coal seam gas in the Reids Dome Beds, which has proven prospectivity in multiple locations throughout the Denison Trough, in particular at State Gas' Reids Dome Project," the report read.
The company said the diversity of coal seam gas and conventional gas targets interpreted at Springsure were well understood by the Galilee management team.
It aid GE was experienced within the region through exploring, appraising and developing both the Northern Denison gas fields and nearby Mahalo Development.
The report found that the Springsure Gas Project was well-positioned to allow pathways into the eastern Australian markets, including proximity to Jemena's proposed Galilee Gas Pipeline.
The proposed pipeline will dissect the bottom half of the Galilee Basin starting about 70km east of Longreach and link with existing pipelines north of Roma.
GE also announced in the report it would extend a binding agreement with gas and water transportation company Jemena to "fast track plans to deliver a large new source of gas from GE's Glenaras Gas Project to the east coast gas market".