Jul 15, 2020

Queensland gas plays headed for merger

Queensland gas plays headed for merger

Real Energy Corporation and Strata-X Energy are planning a merger to create a gas business with significant holdings in the Surat and Cooper basins, Queensland.

The new Pure Energy’s assets would include Project Venus, located within the proven Walloon CSG fairway and immediately adjacent to gas
pipeline infrastructure in the Surat Basin.

It is described as offering relatively low risk with significant upside potential of 694 PJ of prospective gas resource.

Pure Energy is also investigating the feasibility of building a methane to hydrogen plant in Gladstone.

“This is a compelling combination taking the best elements of both companies and having a strong portfolio of projects with positions in both the Surat Basin and Cooper Basin, and having a significant project in Botswana together with the potential to supply gas to East Coast markets,” ” Real Energy managing director Scott Brown said.

Real Energy and Strata X Energy’s combined interest of 100 per cent in the Project Venus and our broader portfolios enhances the likelihood of the merged entity becoming a meaningful gas operator in the east coast of Australia.

“Work on the Connor 1 re-entry on Project Venus is expected to commence in the next month, and from an operational perspective, it is business as usual while seeking shareholder approval for the merge.

“Pure Energy will have exposure to highly prospective and significant projects including Project Venus in the Surat Basin, the Windorah Gas Project in the Cooper Basin, and the Serowe Gas Project in Botswana and of course benefit from the opportunities that we are pursuing through Pure Hydrogen. We have lots of optionality to deliver value.”