Three-fold increase in gas reserves

  Coal seam gas developer Eastern Star Gas, along with its joint venture partner, Gastar Exploration, has received a three-fold increase in the independently certified Proved and Probable (2P) gas reserves of its Narrabri coal seam gas project in Northern NSW.As at 31 December 2007, certified 2P reserves at the Narrabri project have been increased to 185 PJ, and Proven, Probable and Possible (3P) reserves totaling 1,300 PJ have been certified. The gas reserves figures confirm that Eastern Star Gas is on track with its reserves certification program to establish adequate reserves to meet projected commitments under the company’s MoU’s with both Macquarie Generation and Babcock & Brown. Eastern Star Gas Managing Director, David Casey said: “The increase in certified gas reserves has been achieved following assessment of initial results from the corehole drilling program that commenced during 2007.” Mr. Casey said the data from the corehole program demonstrated the continuity and quality of the targeted gas bearing coals and allowed the extrapolation of test results from the Bohena and Bibblewindi production pilots. He said the company was very pleased with the certification of 1,300 PJ of 3P gas reserves. “The 3P certification is especially significant since it represents gas reserves that are known to exist, are commercially recoverable and, importantly, for which there is a likely market within the next five years,” Mr. Casey said.