QGC believes that the coal seam gas wells in ATP620P have the potential to be successful, following impressive early gas flow rates and encouragement from consumers in South East Queensland.

To that extent, QGC will continue testing of the wells and has called in an independent reserves certifier to ascribe proven reserves. It has also applied for Petroleum Leases from the Queensland Department of Natural Resources and Mines, which will cover the 450 sq km of the block and allow QGC to establish Argyle as a commercial gas field.

QGC hopes, over the next two years, to establish over 200 Petajoules (PJ) of proven gas reserves at Argyle from an estimated gas-in-place resource of 2,300 PJ. It takes reserves of between 10 PJ to 20 PJ to support marketing initiatives for the gas.

In an ASX release, QGC stated, "Shares will be issued at a 3% discount to the lowest daily volume weighted average price (VWAP) of QGC's shares traded on each of the three trading days commencing 18 March, provided that the VWAP remains above $0.15 per share."