Australia's Cuesta Coal--a company focused on the exploration and development of coal projects in Queensland--said Thursday that it has been granted the EPC 2168 permit in the Eromanga Basin.
Together with the company's adjoining EPC 2167 application to the south, the two permits form Cuesta's "Eromanga Project." EPC 2168 covers 369 square miles (956 square kilometers) and EPC 2167 encompasses more than 368 square miles (952 square kilometers), data from Cuesta's website show.
Over the next 12 months, the company plans to conduct a desktop review of the geological potential of the project area specifically targeting the Jurassic-aged Birkhead Formation.
"This is a greenfield area which has not seen much exploration activity," Cuesta's managing director Matthew Crawford told DownstreamToday on Thursday.
Historic waterbore data indicates the presence of coal within the permit less than 492 feet (150 meters) from the surface.
Cuesta will also investigate the depth to seam thickness and quality of the Permian Betts Creek Beds coal measures, which the company has interpreted as being present throughout the Eromanga Project.
Commenting on the company's plans ahead, Crawford said that Cuesta is planning to drill more than six scout holes in the two permits after the desktop review is completed. Crawford also remarked that Cuesta has no immediate plans to raise more funds for its exploration projects as it has ample reserves.
Cuesta's major backer is Chinese state-owned power utility Beijing Guoli Energy Investment. Guoli has a keen interest in Cuesta as the bulk of the company’s exploration projects is focused on power generation coal.
Cuesta is at present scouting for a general manager for the Eromanga Project.
Quintella Koh has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at email@example.com.