Comet Ridge (ASX:COI) and Vintage Energy (ASX:VEN) JV awarded potential commercial areas at Galilee Basin

• The Queensland Department of Resources awards Comet Ridge (COI) and Vintage Energy (VEN) six potential commercial areas (PCAs) for another 12 years
• The parties identified up to 20 leads and prospects in the deeper section of the basin for future appraisal
• Commenting on the award, Comet Ridge Managing Director Tor McCaul said the Basin holds huge potential to play an important role in Queensland’s gas sector and could be a significant producer for the East Coast gas market
• At market close, shares in Comet Ridge were trading at 19.5 cents and shares in Vintage were trading at 8.6 cents

Comet Ridge (COI) and Vintage Energy (VEN) have been awarded six potential commercial areas (PCAs) by the Queensland Department of Resources (DoR).

The joint venture (JV) has been awarded another 12 years for permits ATP 743 and 744, and has identified up to 20 leads and prospects in the deeper section of the basin for future appraisal.

Initially awarded in 2009, the company had undertaken exploration which was initially coal seam gas (CSG) focused with Comet Ridge doing a significant 2D seismic survey, the drilling of nine CDG exploration and appraisal wells and a short-term production test on the Gunn 2 well.

In 2018, Vintage farmed into the “Deeps” section of the blocks by funding the Albany 1 well and an additional 2D seismic survey, which was aimed at the deeper sandstone reservoir sections of the Permian aged Galilee Basin Sandstone.

In return, Vintage acquired a 30 per cent interest in the “Deeps” whilst Comet Ridge retained 70 per cent, along with its 100 per cent interests in the CSG Shallows.

As part of the normal exploration process for natural gas in Queensland, the JV carried out a technical review to determine the parts of ATP 743 and 744 that are considered to be the most commercially prospective.

The JV identified six separate areas, totalling approximately 4700 square kilometres, for tenure to be secured under Potential Commercial Area (PCA) applications.

Commenting on the award, Comet Ridge Managing Director Tor McCaul said the Basin holds huge potential to play an important role in Queensland’s gas sector and could be a significant producer for the East Coast gas market.

“The potential jobs and economic benefits that this project could bring is something we are very excited about and we look forward to results from our further exploration in this area over time,” he said.

At market close, shares in Comet Ridge were trading at 19.5 cents and shares in Vintage were trading at 8.6 cents.