Two local producers have won the latest domestic supply only tender for more gas to feed the Australian Market.
Two junior producers – Central Petroleum and Armour Energy – will start exploring for more gas to develop on a total of almost another 400 ha just north of the townships of Miles and Surat in south-west Queensland.
It’s the second release of land within five months for gas exploration after first release of land for domestic supply only, to Senex Energy.
In the latest release, explorer Central Petroleum has been awarded exploration permits for 77 square kilometres in the Surat Basin, 28 km north-west of Miles.
Managing director Richard Cottee says securing the tenement will help fulfil a goal to preserve local jobs in Australia’s domestic manufacturing sector.
“We fully support the dedication of land specifically for the exploration and production of domestic gas, and the awarding of this tender helps us to further this cause.”
Armour Energy has been awarded permits to explore a 318 square kilometre area 17 km north of Surat, near the company’s existing tenures and existing infrastructure.
Armour Energy Chief Executive Officer Roger Cressey says the area will add to the company’s existing portfolio in the Roma Shelf.
“Armour has recently restarted production from its South Western Queensland Kincora Gas Project and we are confident that this new acreage will provide further resources for long term gas production.”
“Additionally, the close proximity of this new tenement to our
Kincora Gas Plant means gas resources can be easily connected, processed and delivered to market.”
Today’s release of additional land for petroleum and gas exploration includes another 6000 square kilometres for domestic production as well and other 111,000 square kilometres without any market condition.