Brisbane, May 19, 2008 AEST (ABN Newswire) - Queensland Gas Company (ASX: QGC)(PNK: QGSCF) has achieved record daily production of 105.2 terajoules from fewer than 100 wells at the Company's Berwyndale South gasfield near Chinchilla.
The production of 105.2 tj in a 24 hour period is almost 20 per cent greater than the previous highest daily production rate of 90 tj.
QGC Managing Director Richard Cottee said the achievement after just two years of actual production underlines the quality and consistency of QGC's world-class acreage.
The figure if annualised would be the equivalent of 38.4 petajoules annually.
It means that QGC's wells at Berwyndale South each have the capacity to average more than 1 million cubic feet of gas per day.
"QGC has demonstrated the ability to deliver quantities of gas well in excess of current ongoing production rates,'' Mr Cottee said today.
"The fact that we achieved this excellent result from fewer than 100 wells illustrates the tremendous capacity of our coals in the Surat Basin.
"Most of our wells are free-flowing - proof of the effectiveness of our drilling and completion techniques.''
QGC outlined a strategy earlier this year to focus on value over volume with the production and sale of gas. "We are confident that this strategy will keep QGC nicely positioned to meet domestic supply contracts as we gear up for the Queensland Curtis LNG project with our partners in liquefied natural gas, BG Group," Mr Cottee said.
Company Profile
Queensland Gas Company is a rapidly-evolving integrated energy business strategically positioned to meet rising demand for its abundant coal seam gas, cleaner power and ample water.
Since listing on the Australian Stock Exchange in 2000 QGC has become Australia's leading coal seam gas producer, Queensland's third largest company, and an award-winning business noted for nimble and innovative action.
QGC's world-class reserves in the Surat Basin are projected to supply around 20 per cent of the Queensland domestic gas market in 2009.
QGC's strengths are underpinned by Queensland Government policy, firm long-term contracts, Australia's move to cleaner, more efficient fuel sources, and the advent of a national carbon trading scheme.
The qualities and depth of QGC's assets and management have been recognised by Britain's BG Group (formerly British Gas), a global energy company seeking to partner with QGC to export gas to higher value overseas markets.
In February 2008 QGC and BG Group announced a joint commitment of about $8 billion to enable the annual export of 3-4 million tonnes of liquefied natural gas (LNG) for 20 years. In April 2008 QGC received $664 million from BG Group as part of the transaction.
The LNG project involves targeting more than 7,000 petajoules (PJ) of 2P (proved and probable) gas reserves, construction of a 380 kilometre pipeline to the city of Gladstone, development of an LNG terminal, and several thousand new jobs.
Next year QGC will join the National Electricity Market. In February 2009 QGC will start supplying gas to QGC's new Condamine Power Station, which will produce 140 megawatts of electricity with minimal greenhouse emissions.
QGC invests in applications for large volumes of water yielded during the release of coal seam gas. The water has the potential to help drought-affected communities, towns and farms in the Surat Basin.
Contact
Information for media:
Mr Hedley Thomas
General Manager
Communications and External Relations
Direct: + 61 7 3020 9043
Mobile: +61 417 797 419
Information for investors:
Mr Ian Davies
Chief Financial Officer
Direct: + 61 7 3020 9040
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