QGC will acquire full ownership of the Surat Basin blocks, Petroleum Lease PL 201 and ATP 632P, including the Berwyndale South gas field, said managing director Richard Cottee.

“Today’s announcement puts to one side past uncertainties with CS Energy, and sets the stage for the early development of Berwyndale South by QGC, with CS Energy as the key customer,” Cottee said.

In return, CS Energy will be paid A$7.3 million in cash, with the purchase conditional on QGC raising at least A$8 million from its current share purchase plan that closes on 4 March 2005.

The 10-year gas sales agreement involves delivery of four petajoules (PJ) of gas a year, increasing to 6PJ per year when CS Energy chooses, as additional gas reserves are certified.

CS Energy has an option to extend the contract for a further five years.

QGC closed at 59 cents yesterday and was at 62 cents by midday AEDT today.