Queensland gas company Denison has confirmed a major new discovery in the Baffle Creek field of the Denison Trough in Central Queensland’s Bowen Basin, promising to bolster fuel and energy security.
The potential scale of the Baffle Creek discovery, initially at 566 petajoules[1], has prompted Denison to invest in doubling gas processing plant and condensate storage capacity in the next 12 months.
The announcement was made by Queensland Resources Minister Dale Last following a visit to Denison’s gas fields, and covered by The Australian Financial Review.
Executive Chairman Dr Xingjin Wang said the discovery of gas and liquid fuel, along with strong support for the sector from the Queensland Government, was good for energy users.
'As a Queensland company focused on producing gas for local consumption, we’re delighted with this discovery and the boost it will give to Queensland and the nation,' Dr Wang said.
'Our discovery of these very large volumes of gas is one of the largest onshore on the east coast for at least a decade. A volume of 566 petajoules could power every Queensland home for five years and is already flowing to gas users including industrial manufacturers – less than two years from discovery.'
Denison’s most recent four-well exploration program proved the vast tight gas resources in deep sandstone reservoirs. Gas from the exploration wells is already supplying the domestic market, with Denison of the first companies to reduce emissions by connecting pilot wells to a commercial pipeline network instead of flaring.
The drilling of Baffle Creek 7 has just been completed, which is one of Queensland’s longest tight gas horizontal wells. Fracture stimulation and testing of this well will occur in the third quarter of this year, with the gas connected into nearby pipelines for the east coast gas market.
Queensland Government Media Release 19 June 2026
The Australian Financial Review 19 June 2026
[1] Netherland-Sewell & Associates, Inc. has provided a maiden, independent Contingent and Prospective Resource estimate for the Baffle Creek field of 566PJ (2C and 2U).
[1] Resource estimate based on first three wells only and new well expected to provide an uplift.
Source: Denison
