Under the terms of the farm-in agreement, QGC received $500,000 and CS Energy will fund up to $4.5 million of.QGC's share of future expenditure in the project.
Operations at the Berwyndale South pilot facility continue to focus on the certification of reserves for the supply of gas to CS Energy under the Gas Agreement announced in December 2002.
Supply of gas under the agreement is expected to begin in 2005, although there are plans to deliver gas in 2004 as gas flow rates increase.
QGC managing director Richard Cottee said the formation of the joint venture is a significant step in the commercialisation of the Berwyndale South field, as it effectively secures funding for the remainder of the reserves certification program and the subsequent development of the field.
QGC, CS Energy and BHP Billiton continue to work together under the Memorandum of Understanding agreed last month with the aim of agreeing the terms under which BHP Billiton could step in as joint venture partner in the area with QGC.
