QGC and OCA team up on Myall Creek East #1

Oil Company of Australia (OCA) and Queensland Gas Company (QGC) have spudded the Myall Creek East #1 gas exploration well in Block 2656 of ATP 647P in the Surat Basin.

Myall Creek East #1 will primarily target the upper Tinowon Sandstone, which is the main gas reservoir intersected in the neighbouring Myall Creek and Churchie gas fields.

The upper Tinowon Sandstone, intersected by the Myall Creek #8 well drilled by OCA in March / April 2003, flowed gas at over 4mmcfd and with recent drilling success in the adjacent fields has raised the expectations of a success at this location.

The well is located in the western Surat Basin, about 4km northeast of the Myall Creek gas field and 7km northeast of the Churchie gas field and will address a mean risked reserves base of 2.6PJ.

Gas from the well could be easily connected to the existing gathering, infrastructure and major trunkline systems.

OCA will operate the drilling of the well plus any subsequent joint venture in the Block and will subsidise the costs of the well, inline with the farmin agreement between the two companies.

When drilling operations have been completed OCA will have the option to take a 50% interest in Block 2656 of ATP 647P. QGC currently holds a 100% interest in that block.