In its quarterly report, QGC says the test results have enhanced the prospectivity of its acreage.

QGC said the investigations also indicated the deeper Taroom coal beds could boost 1P and 2P reserves by 30% for minimal capital costs.

The Berwyndale South development, on budget and time for first gas delivery in April 2006, and Argyle represent 5% of the company’s total acreage. A third gas field, Lauren, is now under development.

QGC claims to have the largest holding of 2P gas reserves of any specialist CBM company in Australia. It also said it had substantial quantities of uncontracted 1P reserves.

“QGC believes it will also have the lowest cost of capital of any of the specialist coal seam gas companies, as a result of its contracts being underpinned by proved reserves," the company said.

QGC also reports it is now Australia’s largest publicly listed specialist coalbed methane company with a market capitalisation of $160 million.

The company has three unconditional gas sale contracts to supply at least 15.4PJ of gas per year. It claimed this could be increased by a further 7PJ per year, bringing total long-term gas sales to 22.4PJ pa.

This figure includes this month’s signing of a four-petajoule gas supply deal for the 450MW Braemer Power Station in southeast Queensland. First delivery from the Berwyndale South CBM field is due in September 2006. QGC also has the option to supply a further 3.7PJ per annum.

“QGC has the largest attributable volume of gas under firm sales contracts of any of its contemporaries,” it said.

The company has also indicated it aimed to become an integrated energy company, using its gas reserves to develop its own power stations.

A feasibility study was now underway for a 100-megawatt development of the Chinchilla Power Station, QGC said.