Amid the hysteria in the energy sector caused by yesterday’s joint bid for Arrow Energy, smaller rival, Bow Energy was swept up in the surge in the wake of its release of upgraded resource figures.
Given the search for the next best thing behind Arrow, Bow shares took a big run, jumping 27.5%, or 27c to $1.25.
The reason was the markets realisation of the size of the upgrade in Bow’s so-called 3P reserves (proved, probable and possible), the highest grade of resource definition there is.
Bow said its total net reserves in the proved, probable and possible (3P) category of Australia’s resources reporting code jumped by more than 60% to 2318 petajoules (PJ).
This came when it announced 3P reserves of 871PJ and a best estimate contingent (2C) resource of 439PJ for its Comet CSG field about 250km west of Gladstone in Queensland.
"Our latest reserves from Bow’s 100 per cent owned Comet CSG field together with the Blackwater CSG field provides Bow with over 2Tcf (trillion cubic feet) of 3P reserves in the permit, and almost 3Tcf of total resource," Bow chief executive commercial John De Stefani said.
"This huge reserves base has provided Bow with significant gas supply opportunities for both the domestic gas markets and the multiple proposed LNG (liquefied natural gas) facilities in Gladstone."
Bow said it was planning a 2P work program over the Comet CSG field in conjunction with a 2P work program currently underway at the Blackwater CSG field, about 235 kilometres west of Gladstone.
Bow says it is undertaking completion work on initial production wells for the Blackwater power station, which is slated for commissioning in the first quarter of 2011.
"The results of the first three Blackwater CSG Field appraisal wells and adjacent core holes BW-3 and BW-4 located in the area have been submitted to MHA, Bow’s independent certifier.
"The initial seven well 3P and 2P drilling program on the Norwich Park program (ATP 1031P 100% Bow) has continued to be hampered by wet weather with VM-1 drilled to a depth of 273 metres towards a projected total depth of 700 metres with 18.7 metres of coals intersected to date," the company said.
