Eastern Corp is another Queensland based gas explorer. It...

Eastern Corp is another Queensland based
gas explorer. It specialises in one of the hottest
topics in energy, coal seam gas (CSG). Eastern Corp
holds a 68% ownership in the Galilee Energy project
located in central Queensland.
Its the light blue area in the middle of the map at
the bottom left of this page.
You may have heard of the Bowen Basin and Surat
Basin coal, oil and gas fields in Queensland. But
you may not have heard about the Galilee Basin.
Well, its next to the gas rich Bowen Basin. And it is
just several hundred kilometres from the area that
Linc Energy had explored so successfully with the
Emerald Teresa coal tenement.
The reason this is a gamble is Eastern are still at the
early stages of developing the project. But that
hasnt stopped Australias leading energy provider,
AGL, from a commitment to invest $37 million in
Easterns CSG project at Rodney Creek.
This is a project that consultants JR Holland &
Associates have reported as having a 97% methane
content and a Gas in Place estimate of more than
20 trillion cubic feet. Just to put that in context, the
Gorgon Project operated by Chevron is estimated
to have a resource of 40 trillion cubic feet.
Bottom line: If this project reaches its potential we
are potentially looking at a very big return. How
big? Remember, this is still early days for Eastern
and a lot can happen.
But lets draw on some real numbers that have been
used elsewhere in the industry. When BG Group
attempted to takeover Origin Energy it valued the
reserves at about 60 cents per gigajoule. But that
was trumped when ConocoPhillips offered Origin