Last week QGC announced that it had struck a joint venture agreement with CS Energy in which it can invest up to $5 million to earn a 50% interest in the two key blocks of ATP632P including the Berwyndale South gas field.

It also did a deal via a Memorandum of Understanding with both companies whereby BHPB may step in as a joint venture partner with QGC and take responsibility for technical development and gas marketing.

Under this arrangement CS Energy would remain a major customer, preserving current and projected gas supply arrangements.

QGC managing director, Richard Cottee, described the deals as a significant show of confidence in QGC's future.

"We have effectively secured funding for the remainder of the reserves certification program and the commercialisation of our Berwyndale South field," Cottee said. "This means we are on target to supply gas to CS Energy and the growing Queensland market in 2005.

"Importantly, regardless of whether CS Energy or BHPB becomes our long-term partner, QGC will retain at least 50% interest in ATP632P."