Brisbane, Sep 17, 2008 AEST (ABN Newswire) - Queensland Gas Company Limited (ASX:QGC)(PINK:QGSCF) has achieved another significant increase in its Proved (1P) reserves and its Proved and Probable (2P) reserves, after analysis of production data and final confirmation by independent certifiers, Netherland, Sewell & Associates, Inc (NSAI). The new figures include BG Group's 20 per cent interest.
The certification by NSAI as of 17 September 2008 confirms 1P reserves at 705 petajoules (PJ) - an increase of almost 16 per cent.
The 2P (Proved and Probable) reserves are now 2,703 PJ - an increase of almost 12 per cent.
The 3P (Proved, Probable and Possible) reserves are now at 7,103 PJ - a slight decrease but inside the margin for error.* (The focus of drilling since our last announced upgrade on 1 July 2008 has been on the development of 1P and 2P reserves).
The latest increase in reserves has been attributed to further analysis of production data and ongoing drilling by QGC as part of the Company's Gas Acceleration Strategy (GAS) launched in 2006.
QGC Managing Director Richard Cottee said today: "QGC's concerted exploration and development campaign will continue apace as we position the Company for our domestic strategy, revolving around gas-fired power stations, and our international strategy with BG Group and the Queensland Curtis LNG Project."
Mr Cottee said a particularly pleasing feature of today's upgrade relates to the higher percentage increase of almost 16 per cent in 1P reserves, compared with an increase of almost 12 per cent in 2P reserves. The ratio of QGC's 1P and 2P reserves is less than 1:4. We have been determined to accelerate the growth of our 1P reserves.
"We flagged to the market on 1 July the probability of further strong upgrades with continued drilling,'' Mr Cottee said.
"The confirmation by NSAI today, just 10 weeks after our last upgrade, is further proof of QGC's ability to prove up large amounts of gas in the key 1P and 2P categories, in a relatively short period.
"Our expectations of a rewarding participation in the domestic market, and in the QCLNG Project with BG Group, grow with each strong upgrade.''
Mr Cottee said shareholders of Sunshine Gas, which is the subject of an agreed takeover by QGC, stand to benefit from this and future upgrades.
Mr Cottee urged shareholders of Sunshine to accept into the QGC bid as soon as possible. The voting directors unanimously recommend acceptance of the QGC bid (unless there is a superior proposal or Sunshine's independent expert concludes that the offer consideration is not fair and reasonable).
The statements in this report relating to reserves estimates have been compiled by Dr Steve Scott, BSc (Hons), PhD, General Manager, Exploration and Technical Services, from advice provided by professional geologist, Mr John G. Hattner, a full time employee of Netherland, Sewell and Associates, Inc. Dr Scott consents to the inclusion of information in the form and context in which it appears in this reserves upgrade announcement.
------------------------------------------------------------------------BG and QGC------------------------------------------------------------------------Category 30 Jun 2008 (PJ) 17 Sep 2008 (PJ) 10 Week Increase------------------------------------------------------------------------Total Proved (1P) 609 705 16%Total Proved + Probable (2P) 2,415 2,703 12%Total Proved + Probable +Possible (3P) 7,163 7,103 (0.83%)*------------------------------------------------------------------------BG Group owns 20% of the reserves------------------------------------------------------------------------QGC equity gas------------------------------------------------------------------------Category 30 June 2008 17 Sep 2008 (PJ) 10 Week Increase------------------------------------------------------------------------Total Proved (1P) 487 564 16%Total Proved + Probable (2P) 1,932 2,163 12%Total Proved + Probable +Possible (3P) 5,730 5,683 (0.83%)*------------------------------------------------------------------------Wholly owned QGC reserves
Contact
Information for Media:
Mr Hedley Thomas
General Manager
Communications and External Relations
Direct: +61 7 3020 9043
Mobile: +61 417 797 419
ASX Contact:
Mr Mark Anning
Company Secretary
Direct: +61 7 3020 9012
Information for investors:
Mr Ian Davies
Chief Financial Officer
Direct: +61 7 3020 9040
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