Proved reserves were up by 28% to 609PJ while 3P (proved, probable and possible) reserves increased by 130% to 7163PJ, according to a report by independent certifiers Netherland Sewell and Associates.

Managing director Richard Cottee said the increases in reserves provide further proof of the world-class quality of the Walloon Fairway.

He added that by the June 30, 2009, QGC would have spent $500 million on the exploration and development of QGC's assets across the Walloon Fairway, involving drill stem tests, core holes and pilot testing.

"The steady and calculated development work by QGC over the past two years has made a significant contribution to the numbers we are seeing today - and we expect further strong upgrades as we continue drilling,'' Cottee said.

QGC and BG Group are planning to build a 3-4 million tonne per annum LNG plant at Curtis Island, near Gladstone on the Queensland coast. The plant will use 190PJ per year from QGC's CSM tenements in the Surat Basin.

Pending a final investment decision due in 2010, QGC and BG anticipate the first shipment of LNG from their project in 2013. Export of LNG is expected to continue until at least 2033.

QGC has targeted a gas reserve base of 7000PJ of 2P reserves to supply the project.