Managing director Richard Cottee said the program will target proven reserves of between 10 and 20 petajoules (PJ), and represents the first stage of a major certification program for the field.

"Over the next two years, QGC aims to deliver over 200 PJ of proven gas reserves for Argyle from an estimated gas-in-place resource of 2,300 PJ," he said.

Aggregate production from the three wells at Argyle averaged 530 thousand cubic feet per day (mcfd) during February. Two of the wells are free-flowing gas and water without pumping, with Argyle #4 flowing gas as high as 536 mcfd and averaging 305 mcfd for the month.

"We believe that with the development at Berwyndale South later this year and the certification of reserves at Argyle the interests of our shareholders are best served by developing these fields together, without BHP Billiton and the additional complication of competing equity interests," Cottee said.

In the last week, QGC recorded combined gas flows of over one million cubic feet per day from the Berwyndale South and Argyle wells. At Berwyndale South in ATP632P, gas rates have reached 377 mcfd.

Cottee said work was progressing on detailed plans for the Berwyndale South development as well as the 10 km lateral pipeline which will link the field to the existing Roma to Brisbane Pipeline.

"We have now delivered the technical feasibility study to our joint venture partner CS Energy and have narrowed the pipeline route to two alternatives, subject to survey results," he said.

The wells are located in ATP620P and were originally drilled and completed in 2000 with open-hole designs addressing different coal seams. Three of the four Argyle wells were put on test from 29 November.

Queensland Gas Company holds a 59.375% interest and Pangaea Oil & Gas Pty Ltd 40.625%.