Bow Energy Limited (Bow Energy) announced the near tripling of the certified 2P coal seam gas (CSG) reserves on the Don Juan CSG project to 101 petajoules (PJ), achieving the company’s reserves target for the project over a year ahead of schedule. MHA Petroleum Consultants, LLC (MHA) have certified an additional 66.7 PJ for the Taroom coal seams for the project near located about 40 kilometers north of Roma, Queensland, adding to the earlier 34.2 PJ certified for the Juand coal seams.

MHA previously certified 2P reserves for the Juandah coal measures only, but following favourable gas saturation analysis conducted on Taroom coal samples has now certified reserves for the Taroom coal measures. There are no changes to the reserves attributed to the Juandah coal measures.

Drill stem testing indicated good to excellent permeability in both the Juandah and Taroom coal seams, including free gas from several wells with one well free flowing gas at a stabilized rate of 370,000 cubic feet per day during a flow test period.

The Don Juan CSG project is a joint venture between Bow Energy, as operator with a 55% interest (Walloon Coal Measures only, including the Juandah and Taroom coal seams), and Victoria Petroleum N.L. having a 45% interest. The Don Juan CSG project includes ATP 771P and ATP 593P and is located in the western Surat basin about 40 kilometers north of Roma, adjacent to and west of BG Group’s Lacerta CSG field. All certified reserves to date are within ATP 771P.

Bow Energy interprets the Don Juan CSG field to be a westerly extension of the Lacerta field, which has certified gas reserves of 44PJ of 1P, 469 PJ of 2P and 1,097 PJ of 3P.

Bow Energy is expecting further reserve upgrades by the end of this year from the Blackwater CSG field in the Bowen basin, with incremental 3P reserves potential in both the Rangal and Burngrove Coal Measures. Additionally, the company has commenced a nine well 2P drilling program in the Blackwater CSG field, to be followed by an initial seven well 3P exploration drilling program in the Norwich Park block.

The Blackwater CSG Field is located in the heart of one of Australia’s top CSG provinces and lies 230 kilometers west of the Port of Gladstone, where a number of world-class export LNG projects are under development with CSG as a feedstock.

Bow Energy’s Chief Executive Officer Commercial, John De Stefani, said, “Bow Energy now has a net total of 55 PJ of 2P reserves, which is 10% more than Bow’s year-end 2010 target for the project.” He added, “The Don Juan field is also only 15 kilometers from an open access pipeline offering the potential to supply both domestic and export gas markets.”

“Bow Energy has strategically located CSG projects, and with the further drilling underway and scheduled in the Blackwater CSG Field and Norwich Park Block, we expect to exceed our end 2010 reserve targets ahead of schedule.”

“Commercialisation activities are continuing, with Bow Energy’s near term focus on domestic gas markets including near field power generation. Bow Energy’s aim is to retain the flexibility of having a significant uncontracted reserve position near the Gladstone LNG projects.” De Stefani said.