Springsure Gas Project

Summary

Galilee is the 100% equity holder and operator of the Springsure Gas Project, which is located in ATP 2050 in central Queensland.  This long-established, gas-producing province in the northern Denison Trough hosts both legacy conventional gas fields and emerging coal seam gas fields in the northern Denison gas fields and the Mahalo Development respectively.

ATP 2050 is a large, under-explored permit, that covers 1,430 sq.km of Early to Late Permian stratigraphy on the northwestern flank of the Denison Trough, which is proven prospective for both conventional gas and coal seam gas plays.

The Springsure Gas Project is also strategically located to ensure quick access to the east coast market for domestic and export sales via the immediately adjacent, existing facilities and pipelines of the northern Denison gas fields (<10km).

These aspects of dual prospectivity and direct access to market in a proven gas province confirm the Springsure Gas Project as a high value asset that can be quickly matured through exploration and into potential gas sales.

Successful exploration at the Springsure Gas Project can be quickly monetised to earn considerable value in this current and forecast tight gas market.  Additionally, there is no domestic reservation requirement of Springsure gas and so the potential reserves are available for either domestic or LNG export sale at significantly high prices.

Geology

atilee have commenced critical exploration studies at ATP 2050 with reprocessing of 696km of 2D seismic in and around the permit to high quality, contemporary standards.  This work has identified several drill-ready gas prospects and multiple additional leads, which are directly analogous to the neighbouring northern Denison gas fields with probable gas pools stacked at multiple levels throughout the Permian section.

A recent petrophysics study has further upgraded the probability of an active conventional gas system in ATP 2050, with data interpretation indicating the potential for missed gas pay in previous exploration wells in and surrounding the permit.  With this knowledge, drilling success at one gas prospect then has the benefits of derisking the additional prospects and leads across the considerable, 1,430 sq.km project area.

Coal seam gas prospectivity is also interpreted across a 50km fairway along the eastern flank of ATP 2050 in the Late Permian Bandana Coal Measures as defined by numerous coal exploration boreholes and the regional grid of reprocessed 2D seismic.  This play type is directly analogous to the nearby commercial Mahalo Development (20km to the east).