QGC said production had increased as planned with daily gas production reaching 71 terajoules a day, the equivalent of 26PJ a year, by the end of September 2007, and exceeding 78TJ per day or the equivalent of 28.5PJ a year by the end of October.
The four QGC-operated fields currently contributing to total gas production are: Berwyndale South in PL201 (QGC 100%); Kenya-Argyle, which are currently producing from PL228 and PL179 only) (QGC 59.375%); Berwyndale in PLA 211 (QGC 100%); and Bellevue in PLA 247 (QGC 70.625%).
QGC also boosted gas sales, which totalled 4.8PJ in the September quarter, an increase of 16% on the June quarter result.
A planned shutdown at CS Energy’s Swanbank Power Station, which reduced contracted gas volumes for the month of September, was offset by spot market sales of gas in which prices were as high as $6 per gigajoule (GJ).
“Spot sales compensated for the reduced CS Energy demand and increased QGC’s average gas price by $0.36/GJ, which compares favourably with the 2007 full year result,” the company said.
ON July 1, QGC and joint venturer Origin Energy began gas supplies to Incitec Pivot. The gas is supplied from QGC’s second commercial development – Kenya-Argyle – which is about 15km east of Berwyndale South and jointly owned by both QGC and Origin Energy.
“Gas supplies to Incitec Pivot increased rapidly during late August and had reached the full contract rate of 20.3TJ per day (equivalent to 7.4PJ per year) by September 1, in accordance with the 10-year contract,” QGC said.
On the back of strong production and an improved average sales price, QGC exceeded budgeted sales, recording $13 million above budget sales revenue in the September quarter.
In August, the company also announced a 20% upgrade of its proved and probable (2P) reserves following an independent review of its gas production and exploration activities to June 30.
In addition, in late September QGC commissioned additional gas processing plant at Berwyndale South that increased production capacity by 70%. The company said this had minimal impact on daily production activities.
Shortly after the quarter ended, construction began on the company’s 140MW Condamine Power Station, which is due to begin electricity sales to the National Electricity Market in February 2009.
