Strata-X Energy, along with Real Energy has been selected by the government of Queensland as preferred bidders for the tender of acreage, dubbed Project Venus.
Strata-X will establish 50:50 joint venture with Real Energy for the Project Venus, which is located in the Surat Basin, covering more than 153km2 of area.
Strata-X executive chairman Ron Prefontaine said: “Having run successful exploration and reserves programs in the Walloon CSG fairway previously, I know what is required to convert the vast coal within PR2019-1-11 to gas reserves. Once material reserves are proven, given the nearby pipeline and infrastructure, our goal is to fast track field development to create early cash flows.
“We are planning to commence field work early in the second quarter of 2020 and our immediate focus will be to prove commercial gas flows which is a required precursor to predictable reserves certifications. In executing on this plan, Strata-X is very pleased to have Real as its partner.”
Project Venus details
The company said that the Project Venus is situated inside the main Walloon Coal Seam Gas (CSG) fairway in the Surat Basin, and is immediately adjacent to the gas infrastructure.
In addition, the acreage has several previously drilled CSG and conventional wells, which confirms the presence of a fully cored well within PLR2019-1-11 area, with gas contents of up to 13m3 per tonne.
Under the joint venture, Real will serve as the administrative and commercial operator, while Strata-X will serve as a technical operator for at least the initial phase to predictable reserves certification.
Once the permit for the acreage is awarded, the joint venture would immediately start a field program to prove commercial gas flows, for certification of predictable reserves.
Real Energy managing director Scott Brown said: “We are delighted that the Queensland Government has selected our Joint Venture as the preferred bidders for this block. It illustrates the quality of our tender and the confidence that the government recognise in our collective expertise we bring to developing this asset into another successful Queensland CSG field.
“This is high quality gas acreage and we see tremendous potential of this significant gas acerage. We look forward to working collaboratively with Strata X to develop Project Venus.”
