Energy Investments said the farm-out to CSM Energy was the first it has undertaken to develop its significant acreage position.
Under the deal, CSM Energy will earn a 50% interest in the Eastern block of ATP 814P by funding four pilot project wells, completing associated gas flow testing and independent gas reserve certification.
It has a right of first refusal to farm-in to the Central block on similar terms for a period of 12 months.
ATP 814P comprises eight separate tenements covering about 3400 square kilometres in northern Bowen Basin.
It contains extensive coal measures of the late Permian Blackwater Group, including Moranbah, Fort Copper and Rangal Coal Measures and is adjacent to Arrow/CH4’s Moranbah coal seam methane development.
CSM Energy, which on its website describes itself as an expert in coal mine operations and management, will act as operator and joint venture manager.
The staged tenement development plan is expected to begin next February.