The coal seam methane producer expects to sell around 12 petajoules this financial year, 30PJ next financial year and over 60PJ the following year.
To achieve this, the company plans to drill over 100 wells and make significant upgrades to its gas processing facilities.
In addition, QGC has allocated $56 million to an exploration program primarily aimed at certifying 2P reserves in three permits, ATPs 648P, 621P and 651P.
“These areas hold three times the equity accounted original gas in place (OGIP) involved in ATP 632P and ATP 620P, where Berwyndale South, Argyle and Kenya are located, and follows analysis of core holes which have been drilled in those locations,” QGC said.
“The program will be funded out of cash flows and cash reserves to be replaced by an appropriate borrowing program to be negotiated in the next 12 months.”
QGC said the increased production would supply new gas-fired power stations being planned for Queensland and New South Wales.
“By confirming the availability of natural gas supplies in southeast Queensland, QGC will be able to supply the local markets and also supply the proposed gas pipeline to the Hunter Valley in New South Wales,” it said.
The company has started developing a 135MW combined cycle gas-fired power project to be owned by a subsidiary of Energy Infrastructure Trust, scheduled to come online from August 2009.
