State Gas executive director Greg Baynton near the site.
State Gas executive director Greg Baynton near the site.

Will this be Qld’s biggest gas field?

ONE of Queensland's newest gas developers has discovered what it says is potentially one of the state's biggest new gas fields.

State Gas executive director Greg Baynton said results from drilling at a Bowen Basin site first explored in the 1950s had in recent days shown potentially significant coal seam and conventional gas supplies.

"We are still awaiting results of detailed analysis but this appears to be a significant gas discovery with potential commercial supply to the east-coast has market," he said.

Pending further positive test results it could be on a par with one of Santos' biggest gas fields, Scotia-Peat, also in the Bowen Basin.

The find comes from State Gas's exploration of an historic underground site called Reid's Dome, about 30km from Rolleston.

First explored in 1955 by American oil drillers, Reid's Dome was abandoned multiple times over the years but last month State Gas drilled a shallow well that showed promised and recently completed a deeper drill to 1.2km.

State Gas chairman Tony Bellas said the outcomes had "far exceeded the company's expectations and confirmed a significant coal seam gas project".

"While we await further analytical results, the initial findings indicate this is a great outcome for shareholders, Queensland and the Australian east-coast gas market," he said.

The company, which only floated on the ASX in October last year, said the find was about 50km from the current Queensland gas pipeline and it would know within the next four months if it would be commercially viable.

State Gas has recently been granted a pipeline survey licence for a feeder pipeline to connect with the Queensland Gas Pipeline and the broader east-coast gas market.