Carbon Energy announced a significant increase in its Proved and Probable (2P) Surat Basin gas Reserves to 1,128 petajoule (PJ1) (1 trillion cubic feet (Tcf)) of natural gas equivalent or 188 million barrels of oil equivalent (mmboe), transforming the Company into the fifth largest 2P gas Reserve in Queensland and more than doubling the Company’s total gas Reserves.
The upgrade provides a solid foundation for building a Queensland gas business and will support the Company’s plans to develop its first commercial scale gas project in Queensland, the Blue Gum Gas Project.
The Conceptual Plan for development on MDL374 and land owned by the Company in the Surat Basin is the Blue Gum Gas Project. This Project is intended to deliver 25PJ per annum of pipeline quality natural gas from a plant that converts the underground coal gasification (UCG) process’ Syngas to pipeline quality gas. It is anticipated that first gas could be supplied to local industry from 2017, once finding suitable investment partners and receiving State Government approvals.