Interests in Mungi are Origin Energy Limited (50%), Molopo (25%), and Helm Energy-Australia LLC (25%).
Molopo said an independent report, carried out by international petroleum consultants Netherland, Sewell & Associates Inc, upgraded the previous 3P reserve estimates of 50.7 petajoules to 143 billion cubic feet of gas or 151.2 petajoules equivalent.
The report also recorded a 235% increase in proved and probable (2P) reserves in Mungi, from 17.3PJ to 58.0PJ. Proven reserves (1P) at Mungi have risen from 1.0PJ to 20.8PJ.
Molopo managing director, Stephen Mitchell, said an additional report on gas reserves at the neighbouring Harcourt / Bindaree gas field was expected in the next few weeks.
“The reserve uplift will assist Molopo in meeting the necessary requirements to supply gas to Ergon from 2007,” Mitchell said.
Last month, Molopo signed a term sheet to supply gas to Ergon Energy, one of Queensland's largest energy utilities, from Mungi.
This follows a memorandum of understanding signed with Ergon in May this year to allow Molopo and joint venture partner Helm Energy to supply from 2007 up to 2.5PJ per annum of gas for 15 years to a potential new power generation near the Mungi field.
“Earlier this year, Molopo demonstrated a breakthrough in completion techniques at the Mungi field through the application of horizontal drilling technology at its Mungi 2 well, for which Molopo announced strong gas production results in July,” said Mitchell.
As a result, he added that the next series of Mungi production wells would most likely be horizontal wells.
“Horizontal drilling in the Bowen Basin therefore has the potential to deliver significantly higher production and recovery rates per well, with lower field development costs, and a resultant positive impact on cash flows,” Mitchell said.
As the closest gas field to the Gladstone market, Mungi currently produces from 14 wells, with sales to Origin Energy and Queensland Cotton through existing gas sales agreements.
Earlier this year, Molopo commenced production testing in the neighbouring Harcourt, Bindaree and Timmy gas fields.
