Central Petroleum Granted Oz Surat Prospect

Central Petroleum has been formally granted an Authority to Prospect (ATP 2031) for the Australian Queensland Surat Basin coal seam gas acreage, the company said August 29.

“This award, which is dedicated to the domestic market, represents a further step in Central’s focus in exploring and appraising potential gas resources in an effort to bring new gas supply to the east coast market to provide certainty to Australia’s manufacturing industry,” the company said.

Central was announced as preferred bidder for the acreage, which covers 77 kilometres², on March 1 this year as part of Queensland’s releases of land for gas development with Australia-only sale conditions. On June 25 it agreed a 50:50 joint venture arrangement with Incitec Pivot (IPL) whereby IPL will contribute up to A$20 million ($14.68mn) for appraisal drilling costs during the initial exploration period.  

“Central looks forward to continuing its gas growth strategy and becoming a major gas supplier into the east coast market,” the company said.