Metgasco increase gas reserves

Metgasco Limited has achieved a significant increase in gas reserves in the 2P....

  Metgasco Limited has achieved a significant increase in gas reserves in the 2P category from its drilling program completed so far this year, although gas reserves in the 3P category (Possible) remain largely unchanged at 1,156 PJ.Metgasco’s drilling and testing results have been assessed by MHA Petroleum Consultants (Denver), who provided independent certification of gas reserves to the company. According to MHA, this result reflects the first stage of the Metgasco’s reserve upgrade program relating to its Stratheden joint venture with CS Energy. Additional data obtained from the drilling program conducted over the past six months in the Stratheden Joint Venture area and the South Casino area will be finalised and provided to MHA over the coming months. Metgasco will undertake further core drilling, testing and analysis at South Casino during the remainder of calendar year 2007. Metgasco Managing Director, David Johnson said these results demonstrated the emerging importance of the Walloon Coal Measures in the Clarence Moreton Basin. “The results are an important milestone in achieving the company’s gas reserve target of 660 PJ in 2P reserves,” Mr Johnson said. “These results also demonstrate the high probability that continued exploration will allow us to convert a substantial proportion of our large 3P coal seam gas reserve position into the 2P category. “The increase in our reserve position is welcome at a time when there is increasing demand for gas in Australia as an environmentally friendly energy source,” he said. “Our strong view is that Metgasco is very well placed by its geographic location to be able to cost effectively deliver gas to markets. We are making good progress on the development of our gas pipeline to Swanbank.”