Early exploration in Queensland’s Taroom Trough is producing 300 barrels of high-quality light oil a day, the State Government revealed this week.
The results have raised expectations that the region could become Australia’s first major new oil province in more than 50 years.
More than $1.2 billion in private investment has been committed to exploration and appraisal programs in the region, with early drilling also producing gas for the domestic market.
The Queensland Government said in a statement that exploration companies believed the region, between Chinchilla and Roma, could contain billions of barrels of commercially recoverable oil.
However, exploration remains at an early stage and further testing will be needed to establish the scale and commercial viability of the resources.
Omega Oil & Gas Managing Director and Chief Executive Officer Trevor Brown said the results indicated the Taroom Trough could become a significant energy-producing region.
“This looks a lot like a multi-billion barrel, perhaps 10’s of billions of barrels-equivalent oil and gas play, with many of the hallmarks of the most prolific unconventional basins in the United States,” he said in a statement.
“To put it in context, over 50 years Bass Strait has produced 7 billion barrels-equivalent and the Taroom Trough could be multiples of Bass Strait in size, and it’s right here in Queensland bringing jobs and economic prosperity along with energy security for Australia.”
Exploration investment increases
The State Government has committed $11.9 million to a Taroom Trough Development Plan, designed to coordinate future development, infrastructure requirements and consultation with landholders and communities.
A further $7.1 million has been allocated to the Queensland Future Fuels Program to investigate domestic fuel production, refining, conversion and storage opportunities.
The Government has also released five exploration tenders in the Taroom Trough since 2024.
Premier David Crisafulli said the early results supported plans to increase Queensland’s domestic fuel production.
“It’s still early days, but early exploration results have been overwhelmingly positive and we’re putting ourselves in a position to be able to assist proponents to move quickly to fast‑track production where required.”
Shell QGC has drilled three new tight gas lateral wells. The company has also completed what it describes as Queensland’s largest 3D seismic survey to map the basin.
Head of Shell QGC Krishna Venkatesan said the company was progressing a substantial exploration program.
“We view the Taroom Trough as an exciting new domestic gas market and backfill opportunity, and our early results have been promising,” he said..
Denison is also preparing to begin drilling in the Taroom Trough next year with joint venture partner OGT Energy.
Mine gas projects generate new investment
In separate developments, two Queensland coal mines are investing in onsite gas-fired electricity generation, using gas captured from mining operations.
Peabody plans to expand its existing five-megawatt power station at the Centurion underground coal mine, 40km north of Moranbah, to 20 megawatts.
The project, supported by the Queensland Government, will capture gas from old mining voids and convert it into electricity, reducing emissions and meeting almost all of the mine’s electricity requirements.
Construction is expected to begin by the end of 2026, creating up to 60 construction jobs. The mine currently supports almost 525 direct jobs.
Peabody Energy President and CEO Jim Grech said in a statement the project would make productive use of gas that would otherwise be a mining by-product.
“The Centurion Goaf Gas Capture Project will transform captured mine gas into a reliable source of electricity capable of meeting almost all of the mine’s power requirements,” Mr Grech said.
“With the support of the Queensland Government and our project partner Carbon Logica, we’re strengthening Centurion’s long-term future while supporting jobs and investment in Central Queensland.”
Meanwhile, construction has started on a 30-megawatt gas-fired power station at Yancoal’s Kestrel mine near Emerald.
The facility will use gas from active mining operations and is expected to begin operating in early 2027.
Its annual electricity production is expected to be equivalent to the consumption of more than 40,000 homes.
Treasurer and Energy Minister David Janetzki said the investments demonstrated opportunities for resources companies to develop new energy infrastructure while improving the efficiency of their operations.
“Investments at Centurion and Kestrel demonstrate how government and industry can work together to deliver practical energy infrastructure, support regional economies and strengthen the long-term competitiveness of Queensland’s resources sector,” Mr Janetzki said.
