Queensland Gas Company 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.

Tags: Queensland Gas Company Limited