Frontier gas exploration grants program

The frontier gas exploration grants program provides 4 projects in the Bowen Basin with a share of $21 million in funding.

The program aims to fast-track the development of future gas supply for Queensland and the broader East Coast market. It supports gas production appraisal activities, which aim to help convert gas resources into reserves. This is a lengthy and costly process that must be completed before gas can be commercialised, which makes this stage of the activity a strong candidate for government support.

Read the Guideline for applicants (PDF, 370KB).

View the map of frontier gas exploration projects (JPG, 605KB).

Below is a progress update for each project. We will continue to provide updates on individual projects as they become publicly available.

Project updates

Denison Gas QLD Pty Ltd—Rolleston Coal Seam Gas Pilot Project

This project involves drilling a dual horizontal production well into the Bandanna Formation using new techniques and operational approaches. The work will help to extend knowledge of the gas reservoir and provide information on the production characteristics.

Progress update

  • Project drilling underway.
  • Aims to upgrade gas from a possible resource to a proven reserve that can be commercially developed.
  • Results will support a possible expansion of commercial production.

State Gas Limited—Rolleston West (Rougemont Expansion) Project

State Gas Limited is currently drilling 2 new appraisal wells, Rougemont-5 and Rougemont-6, at Rougemont to establish estimates of gas reserves. The wells' designs aim to confirm that properly drilled and completed wells can achieve commercial gas flow rates.

Progress update

  • Drilling results from Rougemont 5 and 6, including wireline logs and production testing, are expected to support accreditation of a maiden 2P reserve of 30-50 PJ for the project.

Comet Ridge Mahalo East Pty Ltd—Mahalo East Pilot Project

The project is drilling and testing a vertical/lateral production well-set using rotary steerable system (RSS) technology to accelerate the Mahalo Gas Hub development.

Progress update

  • Dewatering began in January 2025 following the successful drilling of a vertical and lateral well in late 2024.
  • A new agreement was signed with Jemena Queensland Gas Pipeline to undertake front-end engineering design (FEED) for the proposed Mahalo Gas Hub Pipeline. The pipeline, subject to final investment decision (FID), would connect the Mahalo JV’s gas fields and processing facilities to key gas market hubs at Gladstone and Wallumbilla.

QPM Energy Pty Ltd – Fairhill Seam Production Assessment Project

QPM Energy Pty Ltd is testing a pre-draining technique involving drilling a series of wells into the Fairhill seam to maximise gas recovery for commercial use.

Progress update

  • Field activities are underway, using existing infrastructure to fast-track commercial outcomes. Expected to boost gas production from the broader Moranbah Gas Project.
  • A reassessment in March 2025 of the Moranbah Gas Project found greater gas volumes than previously estimated, supporting potential reserve upgrades.