Denison Gas has achieved one of Australia's largest onshore east coast gas discoveries in at least a decade at its Baffle Creek field in Queensland's Bowen Basin. The discovery is initially estimated to contain 566 petajoules (approximately 539 billion cubic feet) of contingent and prospective wet gas resources, based on the first three wells of the exploration program. This success has prompted the operator to double its gas processing plant and condensate storage capacity over the next 12 months.

Potential Impact on Energy Security

Queensland Natural Resources & Mines Minister Dale Last stated that the development has the potential to open a new gas hub for the state in the Bowen basin, replicating the success of the Surat basin. The discovery is already supplying natural gas and liquid fuels into the domestic market. Denison's executive chairman Xingjin Wang noted that 566 petajoules could power every Queensland home for five years and could begin flowing to gas users, including industrial manufacturers, by the end of the year.

Exploration and Production Details

The company's recent four-well exploration campaign proved vast tight gas resources in deep sandstone reservoirs. Gas from these wells is already supplying the domestic market, with Denison being one of the first companies to reduce emissions by connecting pilot wells to a commercial pipeline network instead of flaring. The Baffle Creek 7 well, one of the state's longest tight gas horizontal wells, has just been completed. Fracture stimulation (fracking) and testing will occur in the third quarter, with the gas connected into nearby pipelines for Australia's east coast gas market. The independent resource estimate from consultancy Netherland, Sewell & Associates is expected to be uplifted by the new well.

Regional and Political Context

Battle Creek is located in the Maranoa region of the Denison trough, which is already producing high-quality crude oil. Minister Last hailed the find as one of the largest onshore tight gas discoveries in a decade, emphasizing that Queensland continues to support the East Coast market while criticizing Victoria and New South Wales for failing on new exploration.