The agreement will see Comet earn up a 75% interest in the Lake Galilee farm-in area, which covers 825 square kilometres in the south-east portion of QER’s ATP 1015P permit in Queensland.
Comet will earn an initial 20% interest in the area by drilling two wells by 30 November this year and will see its stake climb to 50% by drilling an additional three wells by 30 November next year.
It will earn its final 25% interest in the farm-in area by drilling another four wells and developing a pilot by 30 November 2014.
Comet will become operator of the Lake Galilee farm-in area while QER will continue to hold a 100% interest in the remaining area of ATP 1015P.
The farm-in area lies between the east and west parts of Comet’s 100% held ATP 744P which contains the Gunn CBM project area.
“This transaction creates a continuous acreage position across our key area in the Galilee basin, expanding the Gunn project area to the east and allowing it to be appraised as a single project,” said Comet managing director Tor McCaul.
“We are very keen to commence exploration and appraisal drilling in the Lake Galilee Farm-in Area to better understand the eastern extent of our Gunn project area.”
Comet said it was planning a three well exploration and appraisal programme which was expected to kick off in September to appraise the extent and characteristics of the coals in the Gunn project area.
It will drill two core wells in the Lake Galilee farm-in area in order to meet its stage-1 farm-in commitments, while a pre-pilot production well is planned in ATP 744P.