Argyle-7, 8, 9 and 10 all had responded positively to the installation of larger pumps and QGC said it expected further increases in gas flow rates from the Argyle East Pilot in coming weeks.

Argyle-11 which had been fitted with the larger pump from the outset, continued to flow more than a million cf/d through the week.

QGC managing director Richard Cottee said that the increasing gas flow rates at Argyle East provide further assurance that the Argyle gas field would be capable of supplying the 7.4 petajoules of gas per year contracted to Incitec Pivot, from 2007.

“It will also provide project financiers with further confidence in the bankability of the underlying resource at Argyle and QGC’s other prospects”, Cottee said.

“Our production testing at Argyle East has already doubled certified proved and probable (2P) reserves to 133.2 petajoules in ATP620P, and the early results at Argyle-12 further to the south, would suggest that further increases in gas reserves can be expected,” Cottee said.

Argyle-12 is a recently completed step-out well located four kilometres south of the five-well Argyle East Pilot.

Gas flowed freely to surface while the well was being prepared for production testing this week, although no accurate reading could be taken. Production testing is due to start immediately after a pump is fitted to the well in the coming week.

QGC (59.375%) and Pangaea Oil & Gas Pty Ltd (40.625%) are contracted to supply 74 petajoules of gas to Incitec Pivot Limited from ATP620P over 10 years starting in 2007.

QGC shares opened at 48.5 cents today and reached 52 cents by 1pm AEDT.