Queensland Gas Co. ahead of schedule

Fledgling coalbed methane producer Queensland Gas Co. is well over 12 months ahead of its timetable to begin production from its leases in the Bowen basin of central east Queensland.


By an OGJ Online Correspondent


MELBOURNE, Feb. 20
�Fledgling coalbed methane producer Queensland Gas Co. is well over 12 months ahead of its timetable to begin production from its leases in the Bowen basin of central east Queensland.

The company now says it expects to be producing from its fields in the Argyle region west of Brisbane by early 2002 at a rate of 4 PJ/year (11 MMcfd). This rate is likely to increase to around 12 PJ/year by 2004.

QGC listed on the Australian stock exchange in August 2000. This week it applied for two petroleum production leases to allow it to proceed with its extraction of gas from the Walloon coal beds with partners Pangaea Oil & Gas Pty. Ltd. and fellow oil junior Icon Oil NL. QGC will hold a 50% interest and operatorship.

The Argyle development involves drilling about 60 wells costing around $150,000 (Aus.) each. Queensland Gas hopes the wells will flow at 200 Mcfd.

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