Comet Ridge Ltd., Brisbane, and its joint venture partner Vintage Energy Ltd., Adelaide, have signed a memorandum of understanding with the infrastructure company APA Group for APA to undertake surveys to identify a gas pipeline route from the Galilee basin in Queensland to Australia’s east coast.
Comet Ridge and Vintage have substantial acreage in the Galilee basin, which incorporates a recent natural gas discovery in its Albany-1 well east of Moranbah and southwest of Townsville.
Under the MOU’s terms, APA’s proposed route to market will also allow for gas to be supplied to the large mining projects planned for the Galilee basin, which would give the companies concerned an alternative to using diesel fuel in their operations.
The APA work program will include ground surveys, engaging with local stakeholders, undertaking initial environmental studies, and applying for a pipeline survey license.
APA, Comet Ridge, and Vintage have agreed a framework to negotiate a gas transport agreement under which APA would build, own, and operate the pipeline system and other related systems to transport gas from the Galilee Deeps JV permits held by Comet Ridge and Vintage.
The timing of the MOU coincides with the JV’s appraisal drilling campaign for the Albany-2 and Albany-1/ST1 wells.
Comet Ridge, as operator, expects the rig to be mobilized to the Galilee location in the next few weeks. The well pad for Albany-2 is nearing completion.
Albany-1 successfully flowed gas without stimulation at 0.23 MMcfd from only the top 10% of the 130-m thick reservoir target.
Albany-2 is to be cored to better understand the reservoir properties to optimize the drilling and stimulation approach and enhance the ultimate gas flows from the Albany field.
The plan is to stimulate both Albany-2 and the Albany-1 sidetrack later this year to be followed by production testing.
Comet Ridge has 85% of the Galilee basin Deps JV and Vintage has the remaining 15%. Vintage will increase its interest to 30% after completion of Stage 2 farmin funding obligations relating to the completed 3D seismic program and the drilling of the two forthcoming wells.