The Queensland Government has awarded further petroleum exploration acreage to Armour Energy and Central Petroleum in an attempt to boost supply to the east coast gas market.
Armour and Central were selected as the preferred bidders for tender areas PLR201718‐ 1‐2 and PLR201718-1-1 on the Roma Shelf, in the Surat Basin.
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The tender area awarded to Armour comprises 318km² and is said to be contiguous with its prospecting licences (PLs) 14, 21, 22 and 227 and associated infrastructure, allowing connectivity to the Kincora gas plant and the domestic market.
Armour Energy CEO Roger Cressey said: “The close proximity of this new tenement to Armour’s Kincora gas plant means gas resources can be easily connected, processed and delivered to market.
“Armour is confident that this block will provide resources that will benefit the company and gas supplies to the domestic market for the longer term.
“This is another step forward for Armour in achieving its aim to become the preeminent resource owner and producer in the Roma Region.”
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By GlobalDataThe company recently restarted production from the Kincora gas plant.
The companies are required to adhere to the commitment of supplying the gas produced from the acreages to the domestic market.
Last year, Armour won the bid for tender area PLR2016/2017‐1‐2 on the Roma Shelf.
The company is engaged in efforts to ramp up gas production from the Kincora project to 20TJ a day over the next 12 to 18 months.
For its acreage, Central applied in collaboration with fertilisers and industrial chemicals manufacturer Incitec Pivot (IPL) and the parties intend to form a 50:50 joint venture to undertake exploration.
IPL has agreed to fund exploration and appraisal of the acreage with an investment of up to $20m.
