The company recently commissioned Netherland, Sewell & Associates to undertake its reserve review in response to a takeover threat by Santos. The upgrade is likely to keep its share price high and the company out of Santos' clutches.

The report also boosted QGC’s proved (1P) reserves by 55% to 228PJ and its proved, probable and possible (3P) by 4% to 2556PJ.

In addition, the experts upgraded the economic ultimate recovery rate from 58% to 71% for QGC’s only currently producing area, the Berwyndale South gas field in PL 201.

QGC managing director Richard Cottee said the report confirmed his company’s exploration results, the bulk of which has occurred over the last six weeks as part of the Gas Acceleration Strategy (GAS).

“Most significant is that the superior gas flow in PL 201 allowed NSAI to upgrade the economic ultimate recovery in … Berwyndale … which sets a high gas production benchmark for the wider gas field,” he said.

“These results show that QGC has very substantial reserves with the highest probability that continued exploration will consistently upgrade our substantial 3P reserves into confirmed 2P reserves.”

He reiterated that the GAS initially focused on upgrading existing 3P reserves into confirmed 2P gas resources, which could be developed and sold.

“By confirming 2P reserves, QGC is best placed to take advantage of the current demand for gas by entering the market as an active independent competitor,” Cottee said.

“While these are exciting results, it should be remembered that the Undulla Nose region contains less than half of QGC’s total estimated original gas-in-place.”