Comet Ridge Limited and Vintage Energy Limited have announced that the Queensland Department of Resources (DoR) has awarded the Galilee Basin joint venture six Potential Commercial Areas (PCAs).
In 2009, Comet Ridge was initially awarded two Authorities to Prospect (ATPs 743 and 744). In a joint statement, the companies said the initial exploration focused on coal seam gas (CSG). Comet Ridge carried out a sizable 2D seismic survey, drilled nine CSG exploration and appraisal wells, and tested short-term production on the Gunn 2 well.
In 2018, Vintage Energy funded the Albany 1 well and additional 2D seismic, targeted at the deeper sandstone reservoir sections of the Permian aged Galilee Basin Sandstone. According to them, this allowed the company to farm in the ‘Deeps’ section of the blocks. In exchange for the investment, Comet Ridge retained 70 per cent along with its 100 per cent interest in the CSG Shallows, and Vintage Energy acquired a 30 per cent interest in the ‘Deeps’.
Comet Ridge and Vintage Energy reported that the Albany 1 well demonstrated the potential for these deeper sandstones to be productive by flowing 230,000 cubic feet of gas per day. In this deeper section of the basin, the joint venture participants have identified up to 20 leads and prospects for further evaluation.
Towards the end of the ATP tenure term, Comet Ridge and Vintage Energy conducted a technical review as part of the standard exploration procedure for natural gas in Queensland to identify the portions of the ATP 743 and 744 that are thought to be the most commercially prospective. The joint venture participants chose six distinct areas totalling about 4700 square kilometres for tenure to be secured through PCA applications.
The Queensland Government has assigned the six areas, designated PCA 319 to 324, to Comet Ridge and Vintage Energy for 15 years to allow for additional appraisal. The underlying licences, ATP 743 and 744, were also extended for 12 years.
Comet Ridge Managing Director Tor McCaul said the Galilee Basin holds enormous potential to play an important role in Queensland’s gas sector and could be a significant producer for the East Coast gas market.
“The potential jobs and economic benefits that this project could bring is something we are very excited about, and we look forward to results from our further exploration in this area over time,” McCaul added.
According to Vintage Energy Managing Director Neil Gibbins, the Galilee Basin appears to have the base ingredients required to be a significant new contributor to Australia’s domestic gas production.
“The results we achieved in joint venture with Comet Ridge, including recording the first measured gas flow from the Lake Galilee Sandstone reservoir at the Albany 1 well, are very encouraging, so it is very pleasing to be granted the security of tenure that enables our exploration efforts to resume,” Gibbins stated.
The ATP 1015 remains to be held by Vintage Energy and Comet Ridge as part of the joint venture. Later in 2022, the block is anticipated to go through a similar ATP renewal and PCA award process.
