Crypto funds to help develop Cooper Basin gas field

Bengal Energy has introduced a novel way of generating income to help underwrite the development of its Cooper Basin gas operation. Eromanga in far South West Queensland The wells are ready on the tenements located on Plenva Downs station about 160km from Eromanga on the Cooper Basin in the very south west of Queensland. But a pipeline connection to the Coonaberry Compression Station is still being built and due for completion in September. Powering crypto The company has decided to go ‘crypto’ to generate revenues in the interim, said Bengal Energy chief operating officer Kai Eberspaecher (pictured above). They are producing around 100kWh of electricity through a natural gas generator which is used to create data centre services to crypto currency miners and block chain users. Related: Big energy matures in dealings with graziers “That was the inception of where the digital mining dongas came from,” Mr Eberspaecher said. “Because our wells are ready in the next few weeks, and then I have another four or five months of them sitting idle, before they can sell any volume through that pipeline. “So, what we've come up with in the interim is our digital mining dongas (DMD), the crypto mining idea and technology. “Which we're installing to basically be able to produce a flow off the well and generate revenues while we're waiting for the pipelines to be available.” The company is acting as operator on the Wareena tenements on Plenva Downs. It’s part of tenements spread across 1773sq km. The Canada-based company last year reported CAD$5 million gross revue from 200 barrels of oil equivalent (boe) a day production out of its oil assets in the Cooper Basin. Pipeline led growth Bengal Energy is in the throes of materially increasing that with construction of the gas pipeline connection running 26km. “In Queensland, we have a range of assets. We have our operated assets, which are partially gas and two oil discoveries,” Mr Eberspaecher said. “They're all located around Eromanga and in the South-West Queensland side of the Cooper Basin. “We're also a 30 per cent partner in the Cuisinier field, which is operated by Santos. “And currently, we're working on bringing back the Wareena gas field and bringing online the Caracal oil discovery on our 100 per cent-owned properties.” The production target would bring the company into line with the likes of Central Petroleum and Armour Energy in terms of size, Mr Eberspaecher said. Buoyed by oil price The company’s break-even point of $50 per barrel meant there was a lot of room to move in the current pricing environment, he said. “I think one of the key points there to consider is your footprint,” Mr Eberspeacher said. “We deliberately went with local suppliers and local contractors, so our construction and operations and maintenance workforce is local. “They're out of Thargomindah, they're called Ago Vires. And they are basically our ears and eyes and hands and boots on the ground doing the things we need to have done. “We also, logistically, were able to strike a deal with our landholders on Plevna Downs and we are able to use the shearing sheds there, which we have upgraded as an operating base for our operators and construction workforce. “That reduces our operating radius because the shearing sheds are within 50 kilometers. The nearest town is within 160 kilometers. “So we have reduced driving time and efficiency quite significantly.” Feature image at top: Bengal Energy chief operating officer Kai Eberspaecher and a data mining donga which will be powered by gas wells on the company's Cooper Basin tenements)

Crypto funds to help develop Cooper Basin gas field

Industry Queensland

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