The reserves report compiled by Denver-based MHA Associates has upgraded Metgasco’s 2P (proved and probable) reserves to 194 petajoules, up from an earlier estimate of 182PJ in July.

Metgasco’s managing director David Johnson said the results showed his company was “well on track” to achieving its 2P reserve target of 660PJ over the next six months.

“It also demonstrates the high probability that continued exploration will allow us to convert a substantial proportion of our large 3P coal seam gas reserve position into the 2P category,” he said.

The upgrade marks a further stage in the company’s reserve upgrade program relating to its Stratheden joint venture with CS Energy.

Additional data obtained from the drilling program over the past six months is being processed and will be provided to MHA over the coming months.

Metgasco is about to take delivery of an ADR 100 rig from Canada, which will enable the company to begin a pilot production program.

“This rig is the first of its type to be used in Australia. This is industry leading technology and we expect it will provide a great boost to our production capacity,” Johnson said.

“This is a very exciting stage in Metgasco’s development – we are making good headway in our developments and at the same time the Eastern Australian energy market is rapidly evolving.

“Demand for clean energy sources is increasing and a traded market is emerging which opens new commercial opportunities for junior developers such as Metgasco.”

Metgasco claims to hold the largest certified gas reserves in NSW, which the company said makes it well placed to deliver gas to the fast growing regions of North East NSW and southeast Queensland.

The company is developing a 30MW gas fired power station in the Richmond Valley south of Casino, which has been granted major project status by the State Government’s Department of Planning.