There was also a 17% increase in proved (1P) reserves and a 186% increase in proved, probable and possible (3P) reserves, according to QGC managing director Richard Cottee.
“Today’s announcement confirms the expectation of our testing program and allows us to expand gas sales contracts,” Cottee said.
“Obviously it also increases QGC’s asset base. The increased reserves also have the effect of substantially increasing the underlying asset backing in our offer to merge with Sydney Gas Limited.”
In total, QGC’s share of 2P Reserves has increased from 336.3 PJ to 422.7 PJ, and its share of 3P Reserves increased to 2464.1 PJ.
The Reserves were certified by independent experts Netherland, Sewell & Associates Inc (NSAI).
The Reserves are contained within various areas, including: Berwyndale/Berwyndale South (PLA 211/PL 201/PLA 212, QGC’s share 90%), Argyle/Argyle East/Kenya/Lauren (PL 179/PL 229/PL 228/PLA 180, QGC’s share 59.375%), Bellevue (ATP 610P, QGC’s share 60.625%) and Kenya East/Jammat/Sean/Broadwater (ATP 648P, QGC’s share 58.75%).
QGC is preparing to start commercial gas production to CS Energy from its Berwyndale South Project in April 2006 more than three months ahead of the contractual deadline. Overall, QGC gas production is scheduled to increase to a minimum of 15.4 PJ a year by September 2007 with all commitments covered by existing 1P Reserves.
Sales are expected to double to around 30PJ a year in 2008/2009 with the commitment to supply an on-site 200MW power station proposed by the company at Chinchilla.
Cottee said that the latest increases were based on results from development wells completed in the Berwyndale South Gasfield (PL 201) and exploration work completed and reviewed in 2005 in PLA 211/PLA 212; PL 179/PL 228/PL 229/PLA 180; ATP 610P and ATP 648P.
“This upgrade extends QGC’s reserves geographically and geologically. The company now has 2P Reserves in ATP 610P and ATP 648P as well as additional 3P Reserves in PL 179, PLA 180, PLA 211, PLA 212, PL 228 and PL 229,” Cottee said.
“In addition, QGC’s reserve estimates now include the deeper Taroom Coal Measures seams within the Walloon Subgroup,” he said.
“The Undulla Nose region contains less than half of QGC’s total estimated original gas-in-place There is plenty of scope to further convert Possible Reserves to 2P Reserves within QGC’s tenements in the Surat Basin.”
