Drillsearch Energy Limited
(ASX:DLS) and QGC have agreed on new terms covering their ATP 940P Cooper Basin Shale and Tight Gas Joint Venture in central Australia.
Drillsearch says it will continue as operator for the revised program which has been extended and expanded to include at least 10 wells.
As a result the company has boosted its full year capex guidance to between $115 million to $130 million but affirmed its conventional and unconventional capex is fully funded through to 2016.
Managing Director Brad Lingo says the amended terms represent a significant commitment to commercialising unconventional gas in the Cooper Basin.
Mr Lingo says the joint venture has the potential to deliver material returns and the company looks forward to delivering results from its production testing program later this year.
Drillsearch Energy reported a net profit of $35.5 million in the first half of its 2014 financial year.
