Oil and Gas News

Denison locks in $42m for gas development

Denison Gas has secured $42 million in funding for the next phase of the company’s 2P conventional gas reserves in Queensland.

A suite of existing shareholders provided part of the funding, with the remainder provided by a major Australian bank and secured by Denison Gas’ gas reserves base.

The development will offset natural field decline and expand current production capacity largely through the use of existing facilities and infrastructure. 

Gas will be made available for sale into the east coast gas market where it will be available to support existing industrial, commercial and domestic customer demand for low carbon intensive energy.

Chief executive officer Robert Gard said the latest tranche of funding will allow Denison Gas to unlock the value of both its remaining undeveloped 2P reserves and the capital value already invested in our existing infrastructure. 

“The east coast domestic gas market is forecast to be short of supply in the next few years and our incremental conventional gas production will help satisfy this shortfall,” Gard said.  

Following the restart of its Denison North project in early 2020 , the company embarked on a program to bring its remaining 2P conventional gas reserves into production, to fill its available gas processing capacity, to meet its executed gas sales agreements through to 2023, and to allow contracting of new gas sales.

In addition, Denison Gas will also commence a pilot well testing program focused on a portion of its contingent CSG resources to position itself to become a significant independent producer into the east coast gas market. 

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