The company's total proved and probable (2P) reserves have increased from 106PJ to 193PJ, an 82% increase, while its proved, probable, possible (3P) reserves have increased from 537PJ to 807PJ.
The additional reserves are located directly to the south east of the Moranbah Gas Project (a 50/50 joint venture with BHP Billiton over PL191) within PLA 196 and in the Peak Downs area south of PLA196.
Shareholders will be heartened also, considering the stock was heavily sold down after a report savaged its reserves. Eleven days ago CH4 opened at 70c. Friday last week it closed at 95c after opening at 88c.
"This reserve upgrade represents a significant increase to the 2P reserves previously delineated within the Moranbah region, which are the foundation of the Enertrade gas sales agreement," said CH4's chief executive officer Louis Rozman.
"CH4 now has 2P reserves well in excess of the existing contracted quantities. This significant reserve upgrade provides the potential for those sales volumes to be increased."
Additionally CH4 and BHP Billiton, through the Moranbah Gas Project, have a contract to supply 290PJ of gas to Enertrade for sale in the Townsville market over the next 15 years.
The Moranbah Gas Project is currently under construction with first delivery to Townsville expected in early 2005, initially to Transfield's Townsville Power Station at Yabulu.
Supply of commissioning gas to Enertrade is expected to commence in late August 2004.
Published on EnergyReview.net, July 23.
