The land releases awarded to Santos-Shell JV and Armour Energy cover a total area of more than 900km². Credit: Patsy Wooters.

Armour Energy and a 50/50 joint venture (JV) between Santos and Shell have secured rights to explore more than 900km² of land in Surat and Bowen Basins in Queensland, Australia.

The companies received acreage under the Queensland government’s latest petroleum acreage release tender.

Armour was selected as the preferred tenderer for Area PLR201718‐2‐4 on the Roma Shelf, in the Surat Basin. The company noted that its gas pipeline infrastructure traverses the newly awarded exploration block.

The acreage covers a 457km² area and is near the company’s Kincora production facilities. The Kincora project currently produces nine terajoules (TJ) of gas a day, with expansion to 20TJ/d planned for next year.

Armour Energy CEO Roger Cressey said: “The award of this tenure adds to our plans for the reinvigoration of the large Permian gas and condensate plays of the Surat Basins.

“These land releases mean more petajoules in pipes and more gas for Australia’s east coast.”

“Our current activities are demonstrating that the conventional reservoirs of the Surat still have a long‐term future in producing oil and natural gas for Eastern Australia.”

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Meanwhile, the Santos-Shell JV secured acreage in the Surat and Bowen Basins. The PLR201718-2-5 licence covers 393km² and will be operated by Santos.

According to Santos, the JV partners can take advantage of the acreage’s proximity to the Wallumbilla hub.

The company noted that exploration work in the new licence area will target natural gas in deep sandstone reservoirs of the Bowen Basin, beneath the Surat Basin.

The Queensland government released the land parcels to boost supplies to the east coast domestic market.

Queensland energy minister Dr Anthony Lynham said: “These land releases mean more petajoules in pipes and more gas for Australia’s east coast.

“Queensland continues to do lead the nation on gas and again, I’m imploring other states to follow our lead – doing so will secure industry and jobs, and not just in Queensland.”