AGL to acquire Gloucester Basin coal seam gas assets
AGL Energy (AGL) anticipates completing the acquisition on or about December 19, 2008. PEL 285 has 175 peta joules (PJ) of 2P reserves certified by Netherland Sewell and Associates (NSAI) as at February 2008, representing approximately 26% of New South Wales certified reserves. Based on additional drilling data obtained by the AJ Lucas Group (AJL) since February 2008 and applying assumptions consistent with the NSAI methodology, AGL expects that reserves will be upgraded to between 400PJ and 500PJ (2P) and 700PJ and 800PJ (3P). AGL anticipates formal certification of these updated reserves in the first half of calendar 2009. AGL has been conducting a review of a range of opportunities in the upstream gas market, including due diligence on the options it holds to acquire 100% of the Lacerta and 15% of the Polaris gas fields in Queensland from the BG Group. These options expire in April 2009. Michael Fraser, managing director of AGL, said: "This is a prudent allocation of capital that expands AGL's equity gas footprint in our core New South Wales market. The timely development of the Gloucester and Hunter gas projects will provide AGL with a new source of long term wholesale gas supplies for the Sydney and Newcastle markets."