Key Petroleum Ltd., Perth, signed a nonbinding memorandum of understanding with Santos Ltd. and Beach Energy Ltd., both of Adelaide, to cover the proposed terms for connection and transport of natural gas from Key’s Tanbar project area in southwest Queensland to the Cooper basin gas-gathering network for processing at Moomba in South Australia.
The commercial terms of the MOU, which were not disclosed, will form the basis for negotiation of a future formal processing and transportation agreement.
Key’s wholly owned Tanbar prospect lies in Queensland permit ATP 924 and is estimated to contain 500 bcf of unrisked gas resources. The estimates are based on mapped structural closures and stratigraphic components of the Permian Toolachee formation.
Key is mainly focusing on Triassic and Permian reservoir targets that lie 20 km west of Santos’ Mount Howitt and Whanto gas developments.
The company is planning to drill two prospects, Alfajour and Taj, in the coming months.
