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Unlisted petroleum explorer and developer Denison Gas is already supplying the east coast energy market with a game-changing gas discovery drilled to the north of Brisbane. Rated amongst the largest gas and condensate finds for decades, the discovery at the Baffle Creek field in the Denison Trough is assessed to contain enough energy to power every Queensland home for years to come.
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And unlike most discoveries, which may require decades to come on stream, Baffle Creek is already flowing to gas users. Executive chairman Dr Xingjin Wang said the liquids-rich gas find was good news for energy users.
“Our discovery of these very large volumes of gas is one of the largest onshore on the East Coast for at least a decade. A volume of 566 petajoules could power every Queensland home for five years and is already flowing to gas users, including industrial manufacturers,” Mr Wang explained this week.
Denison’s most recent four‑well exploration program proved a vast tight gas resource in deep sandstone reservoirs. The Baffle Creek 7 well has been completed as one of Queensland’s longest tight gas horizontal wells. Fracture stimulation and testing of this well will occur in the third quarter of this year, with the gas connected into nearby pipelines for the East Coast gas market.
The Queensland government has welcomed the new onshore gas discovery in the Maranoa region of the Bowen Basin. The state’s minister for Natural Resources and Mines, Dale Last, said the new development had the potential to open a new gas hub for Queensland in the Bowen Basin.
“This discovery has the potential to replicate the success of the Surat Basin with the new energy frontier already supplying natural gas and liquid fuels into the domestic market,” Minister Last explained.
“We know that Queensland is the East Coast gas market. This resource will secure long-term domestic energy supply, jobs, and cement Queensland’s position as a powerhouse.”
In comments that are more like those that would be made by a Queensland rugby league coach after a State of Origin game, Minister Lake took the opportunity to have a crack at his New South Wales and Victoria rivals.
“Queensland is continuing to do the heavy lifting for the east coast market and remains the only jurisdiction to provide a stable investment location after the NSW and Victorian governments failed on a new exploration position,” he said.
“The Crisafulli government is open for business and delivering a better lifestyle through a stronger economy by backing in a resources industry that brings more energy supply into the domestic market, while the NSW and Victorian governments refuse to develop their own resources, we’re just getting it done.”
Local member Ann Leahy said the Maranoa region was the energy capital of Queensland, and the region is primed to continue delivering for the East Coast market.
“Our region was the birthplace of Australian natural gas, and we are well equipped with the workforce and knowledge to get on with the job of keeping the lights on for Queensland,” Ms Leahy said. “This discovery will have major flow-on effects for our region – it means more local, highly skilled jobs, more work for local suppliers and businesses, and economic growth in the community.”
University of Queensland’s Gas and Energy Transition Research Centre emeritus professor Andrew Garnett said the discovery was evidence of Queensland gas producers using innovative ways to get gas to market.
“In oil and gas, we have many examples… where new eyes on old data have uncovered significant but previously missed resources,” Professor Garnett said. “If you add innovation and application of new technology, as with Denison Gas, and when there is a supportive State Gov’t, then more supply can flow.”
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