Unlisted WA energy company Cool Energy Ltd has teamed with Sydney-based petroleum explorer Great Artesian Oil and Gas Ltd to investigate the potential for a CryoCell gas processing plant in South Australia's Cooper Basin.
Unlisted WA energy company Cool Energy Ltd has teamed with Sydney-based petroleum explorer Great Artesian Oil and Gas Ltd to investigate the potential for a CryoCell gas processing plant in South Australia's Cooper Basin.
The full text of a Great Artesian Oil and Gas announcement is pasted below
Great Artesian Oil and Gas Limited (ASX: GOG) has teamed with Cool Energy to investigate the potential to construct a CryoCell® gas processing plant for its Cooper Basin gasfields that would produce sales gas, LPG and
condensate, as well as capture and store carbon dioxide (geo-sequestration).
"We are excited that this could offer the potential to commercialise our existing gas discoveries and to create value from existing and future carbon credits in a carbon-aware market," Great Artesian's managing director Andy Carroll
said.
The two companies envisage a plant capable of treating 20 million standard cubic feet of gas per day (MMscfd). It would be one of the first to use pioneering greenhouse gas reduction technology developed by Cool Energy and proven in their tests and field trials over the past 2 years at ARC Energy's Xyris Gas Field in the Perth Basin in WA. Early laboratory work was done at WA's Curtin University of Technology over a number of years, some of which
was backed by Shell who later became a shareholder in Cool Energy. Woodside Petroleum has also been very involved in the field trials.
Great Artesian is the operator of the PEL 106 permit area of the Cooper Basin, South Australia, where there have been eight 'wet' gas discoveries. Andy Carroll says the two companies have now signed a cooperative
agreement to study the feasibility of the project.
"For Great Artesian and our partners in the gas fields, the incentive is to commercialise our existing gas discoveries and establish infrastructure appropriate for future discoveries," Mr Carroll said. "We will continue to discuss synergies and other options with other oil and gas companies in the area".
The potential project development would involve production wells, a gathering system to feed gas and condensate into a central facility, processing the gas by dehydration, capture and sequestering of CO2, followed by separation of
condensate and LPG, before sales gas compression and transmission via the main gas pipelines to Adelaide and Sydney.
Following the completion of the large Spinel 3D and other recent seismic surveys and the re-processing the Paranta 3D seismic survey, a multi-well exploration program will commence in PEL 106 in September/October. Great Artesian could participate in up to eight exploration wells drilled in the next nine months.
Managing Director of Cool Energy, Ms Jessie Inman, said her company is excited about the potential for its proprietary CryoCell® gas processing technology to be used in the Cooper Basin. "It not only has the potential to
unlock previously uneconomic gas reserves, but ultimately will give natural gas very strong 'green' credentials in a decarbonised energy future."