Santos Ltd., Adelaide, has joined State Gas Ltd., Brisbane, in a venture appointed as preferred tenderer for two new areas to be awarded under the Queensland government’s petroleum land release program in Bowen basin.
Area PLR2021-1-2 (Block 2) lies adjacent to State Gas’ Reid’s Dome permit (PL231) and its Rolleston West project (ATP2062) to the west and north and the 50%-Santos owned Warrinilla and Warrinilla North projects (PL451 and PCA 301) to the east.
Area PRL2021-1-3 (Block3), about 20 km east, lies between Warrinilla and Warrinilla North and the Santos-operated Arcadia Valley commercial gas operation.
Both permits are prospective for coal seam gas in the Bandanna formation that hosts production in nearby permits and which State Gas is currently testing at Rolleston West.
Success in the permits can be readily encompassed into existing projects for development.
Neither permit is constrained by domestic gas reservation enabling discoveries potential access to both export and domestic markets.
Under the joint venture, Santos will serve as operator with 65% interest. State Gas will hold 35%.
