Strike Oil to explore for coal seam gas in Cooper Basin
STRIKE Oil will target coal seam gas in the Cooper Basin region after winning the first petroleum exploration licence granted under a native title land access agreement.
Strike Oil and joint venture partner Australian Gasfields Limited will have a 5-year licence for PEL 96, located south of the Moomba gas production facilities and close to gas infrastructure servicing South Australia, Queensland and New South Wales.
The company will be an early coal seam gas player in the area, Strike Oil managing director Simon Ashton said.
"Strike Oil is uniquely positioned to capitalise on the favourable market outlook for coal seam gas companies with a fast track exploration and development strategy with drilling planned to commence in the September quarter,'' Mr Ashton said.
Previous drilling and seismic indicates coal is present over an area of more than 1,800 sq km, Strike Oil said.
It is currently planning a drilling program for the prospect with the intention of securing regulatory approvals for drilling in the September quarter.
The licence is the first granted under the landmark Yandruwandha/Yawarrawarrka Native Title Petroleum Conjunctive Indigenous Land Use Agreement.
The Conjunctive Petroleum ILUA was a first for the State, and was Australia's first such agreement covering a proven petroleum-producing region, Mineral Resources Development Minister Paul Holloway said.
The Native Title land access arrangements were implemented in South Australia in 2001.
"The acceptance of the Conjunctive ILUA by a licensee represents an evolutionary step in streamlining the processes that enable the grant of licences for petroleum exploration and production in South Australia, while also protecting rights that flow from Native Title,'' Mr Holloway said.
Five Cooper Basin exploration licences have been offered to the market through a competitive bidding process, with bids due to close 15 October 2009.
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