APA, which is never shy about signing MOUs with explorers with unproven resources, says it will work with junior Comet Ridge to facilitate options for the delivery of gas from Comet Ridge’s Galilee Basin permits.

The agreement, which comes after APA’s bid to build the Northern Gas Pipeline between Tennant Creek in the Northern Territory and Mount Isa was unsuccessful, considers a new pipeline several hundred kilometres east of Mt Isa to Gladstone via Moranbah or to Brisbane.

APA also has an MOU with Armour Energy for a pipeline in the Mt Isa area to the coast.

The latest agreement considers the development of new pipeline infrastructure and other related mid-stream infrastructure, although any investment will be subject to the satisfaction of a number of conditions, including gas resource certification, gas supply and transportation agreements and final board approvals.

Comet Ridge has an independently certified 56PJ of 1C gas in the Albany Structure (previously the conventional Carmichael prospect), 220PJ of 2C gas across the Albany and Gunn areas and some 2300PJ of 3C gas, plus a prospective resource in Albany of 596PJ based in the results of just three CSG wells.

It now owns 100% of ATP 743, ATP 744 and ATP 1015, and is planning to drill the Albany prospect, assuming it can find a farm-in partner.

Having a pipeline company in the wings, and gas-hungry markets at the other end, could help derisk any discovery’s potential for remaining standard – and it could lead to development of Galilee Energy’s own discovery at Glenaras elsewhere in the basin.

Galilee holds some 4000sq.km in the remote basin, and has a significant CSG contingent resource position in the Betts Creek coals with a 1C of 308PJ, 2508PJ (2C) and 5314PJ (3C). Well testing has been promising in recent weeks.

APA boss Mick McCormack said APA was committed to working collaboratively with existing and new customers in providing innovative new gas transportation services.

“The interconnected nature of APA’s East Coast Grid enables potential new producers such as Comet Ridge, to explore opportunities to market their gas in multiple domestic and international gas markets.

“Our infrastructure continues to connect more gas resources with more gas markets to proactively meet the needs of our customers.”