AGL Energy's Gas Reserves Go Up

AGL Energy of Australia announced a substantial increase of 32% in its total proved plus probable gas reserves entitlement over the 2010-2011 financial year, after its Hunter and Silver Springs projects reported a hike.

The total reserves stood at 1.75 trillion cubic feet of gas, an increase of 427.5 million cubic feet in one year.

The increase was net of production of 10.9 MMcf over the intervening period, the company said, with slips in production coming from its 100% owned Camden project and 50% owned Moranbah project.

Moranbah, a joint venture with operator Arrow Energy reported a fall of 103.7 MMcf in reserves as per a study conducted by Arrow on December 31 of last year however a 118.8 MMcf increase in reserves at the Hunter exploration project and 54.4 MMcf increase in reserves at the Silver Springs project compensated the drop.

Silver Springs was acquired as part of the Mosaic oil transaction in October 2010, with a reserves assessment conducted by the operator.

All other estimates were conducted by SRK consulting, the company said.