The latest acquisition means that since last November, QGC has increased its CBM resource by some 8.6 trillion cubic feet of gas, representing potential reserves of 2,000 petajoules.

Covering an area of some 1,875 square kilometres, ATP 651P is considered by QGC to be highly prospective for coalbed methane, containing an estimated resource of 7.6 trillion cubic feet of gas, with an average coal thickness of 30 metres at a depth of 400 metres. Based on a 25% recovery factor this equates to potential reserves of around 1,700 petajoules.

QGC had earned its initial 50% working interest through drilling the Woleebee Creek-1 and Ogle Creek-1 wells.

QGC's Managing Director, Rob Crook described the move to a 100% interest in ATP 651P as a significant development for QGC given the successful test results achieved to date on the Woleebee Creek-1 well.

"During recent testing, the well flowed gas up to 268 million cubic feet per day, which strongly indicates that the coal measures in the area are capable of gas flows at high rates, and as such are commercially highly prospective," Mr Cook said.

Mr Crook said QGC would pay $200,000 and grant a royalty over any future CBM production from the permit to the current interest holder JS Matthews.

The purchase of ATP 651P from JS Matthews is conditional upon the consent of the Minister of Natural Resources and Mines, QGC said.