The three companies will undertake exploration in the Don Juan CSG Joint Venture area, which combines Bow’s existing ATP 593P permit and an adjoining tenement, ATP 771P, belonging to VicPet.
Bow said the 1158 square kilometre JV area is located immediately adjacent to previously discovered CSM gas flows, about 25km northwest of Sunshine Gas’ Lacerta project.
The Walloon Coal Measures are interpreted to be present and gassy over all of the JV area to depths of 250-600m, according to Bow.
Assuming half of the JV area contained 2 petajoules of gas per square kilometre, Bow said the area has the potential to contain more than 500PJ of methane gas.
As soon as equipment becomes available, the JV plans to drill up to three test core holes and depending on results, start a CSM pilot by the end of the year with a view to proving a commercial gas deposit in 2008.
Bow managing director Ron Prefontaine said the new JV would complement his company’s conventional oil exploration and production business in Queensland.
“With the combined oil and now coal seam gas exploration and production programs planned for Bow, there is increased potential for substantial growth of the company over the next 12 months and beyond,” he said.
“Bow will be carried on the next three oil exploration wells planned in the Cooper- Eromanga Basin permit ATP 752P through a farm-out and, assuming successful farm-out market programs in progress, be carried in multi-well oil exploration and oil production enhancement programs in the Surat and the Central Eromanga basins.”
Interests in the Don CSG JV – after the initial coring and pilot programs – will be Bow Energy (45% and paying 55% of coring and initial pilot), Victoria Petroleum (45% and paying 25%) and Roma CBM (10% and paying 20%).
