Tipton West is in ATP 683P, Dalby Block, operated by Arrow Energy.

In a statement JV partner Comet Ridge Ltd said, “[The] US-based independent reserve engineers have confirmed a large reserves base of coal seam gas at the Tipton West Field with the certification of 1,086 Petajoules (PJ) in the 3P category.”

“Gas flow rates continue to increase on the Tipton West Pilot since dewatering of the initial four Pilot wells commenced in May [and] soon after start-up of the pilot, pressure responses were seen in monitoring wells 5 km and 7 km away.

“This was the first indication of the scale and continuity of the reserves now confirmed by NSAI. Three additional Pilot wells are currently being drilled to accelerate the dewatering of this substantial gas accumulation,” added the firm.

According to Comet Ridge, gas sale MOUs, for gas to be wholly or partly supplied from the field, have been signed with the likes of Ergon Energy, BP and Wambo Power Ventures; which will see a total sales volume of 124 PJ.

Gas sales MOUs, to be wholly or partly supplied from the Tipton West Field, are in place for over 10 PJ per annum (with Ergon Energy (see below), BP and Wambo Power Ventures) for a total sales volume of 124 PJ and the JV is seeking to convert the MOUs into definitive gas sales agreements.

In some cases, as in the MOU with Ergon, sales volumes have even gone up.

“Sales volumes pursuant to the gas sales MOU announced earlier this year with the Queensland Government owned energy retailer, Ergon Energy, have been increased. [The] JV will now deliver sales gas quantities of 3.2 PJ per annum to Ergon (compared with the 2.7 PJ p.a. previously announced) from the Tipton West Field at delivery points in Oakey and Dalby (in SE Queensland), beginning 1 January 2006,” said Comet Ridge.

“Other gas sales MOUs are currently under negotiation,” added the firm without elaborating further.

The Tipton West JV consists of Arrow Energy NL (80%) and Comet Ridge (20%).