ESG beats 2009 reserves target
Eastern Star Gas Limited (ESG) upgraded its Proven and Probable (2P) gas reserves of the Narrabri Coal Seam Gas Project in New South Wales as at 31 December 2009 by 152% to 1,520 PJ, of which ESG’s net interest is 988 PJ. The company also increased its 3P reserves by 43% to 2,797 PJ, of which ESG’s net interest is 1,818 PJ.
Managing director, David Casey, said the updated gas reserves estimate takes into account pilot production and other exploration data up to the end of 2009 and exceeds the company’s stated 2P reserves target of 1,300 PJ.
”This result confirms beyond doubt the lateral well methodology pioneered by ESG during 2009 is ideally suited to the coals targeted at Narrabri and provides the foundation for greater results ahead in 2010,” Mr Casey said.
“The upgrade primarily reflects an increase in the extent of gas reserves certified for the Bohena coal seam but, for the first time, the Namoi coal seam has made a material contribution.”
Mr Casey said the application of lateral well technology and focussed exploration has unlocked what is now a major resource for NSW and the east coast market.
”The upgrade in reserves will ensure that ESG is well placed to pursue its staged approach to commercialisation of reserves through existing MoUs along with additional material domestic gas sale opportunities under review,” Mr Casey said.
He added that further progressive increases are expected in certified gas reserves would continue to be booked as production from production pilots climbs, as production pilots are brought on line and as the areal extent and quality of the Namoi resource is further demonstrated.
At the close of trade Friday, ESG shares were trading at 77.5c.
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