Brisbane, July 1, 2008 (ABN Newswire) - Queensland Gas Company (ASX:QGC)(PNK:QGSCF) has exceeded interim estimates of its Proved, Probable and Possible reserves, following analysis and final confirmation by independent certifiers, Netherland, Sewell & Associates.
The numbers as of 30 June 2008 confirm 1P (Proved) reserves at 609 petajoules (PJ), 2P (Proved and Probable) reserves at 2,415 PJ, and 3P (Proved, Probable and Possible) reserves at 7,163 PJ.
BG Group, which is partnering QGC in the Queensland Curtis LNG Project to export liquefied natural gas from Gladstone, owns 20 per cent of the reserves.
QGC Managing Director Richard Cottee said the increases in reserves provide further proof of the world-class quality of the Walloon Fairway. QGC foreshadowed the increases on 19 June 2008 in interim estimates in the leadup to the release by QGC of a bidder's statement for a friendly takeover of Roma Petroleum.
Mr Cottee said that by 30 June 2009 about $500 million will have been spent 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,'' Mr Cottee said. A summary of the NSAI reserves estimate, as of 30 June 2008, follows (together with the previous announced interim estimate).
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Category* 07/12/18(PJ) 08/06/19(PJ) 08/06/30(PJ) 6 month
Interim est. increase
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Total Proved(1P) 477 560+ 609 28%
Total Proved
+ Probable(2P) 1,317 2,370+ 2,415 83%
Total Proved
+ Probable +
Possible(3P) 3,116 7,100+ 7,163 130%
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*QGC's share is 80 per cent of each Total for the 2008 figures.
The statements in this report relating to reserves estimates have been compiled by Mr Mike Herrington BS (Civil Engineering) Professional Petroleum Engineer (PE), Chief Operating Officer, QGC, from advice provided by Professional Geologist, Mr John G. Hattner, a full time employee of Netherland, Sewell & Associates, Inc. Mr Herrington and Mr Hattner consent to the inclusion of information in the form and context in which it appears in this reserves upgrade announcement.
