Tuesday, July 31

Origin, Conoco LNG project boosts gas reserves 11%

SYDNEY--A US$20 billion Australian gas-export joint venture boosted its coal-seam-gas reserves by about 11% last financial year amid mounting concerns of potential reserves shortages.
Origin Energy Ltd. said Tuesday its Australia Pacific LNG joint venture with ConocoPhillips /quotes/zigman/294662/quotes/nls/cop COP -0.20% and China Petrochemical Corp., or Sinopec, had proven and probable reserves of 13,111 petajoules at June 30, up from 11,775 petajoules a year earlier.
Investors welcomed the increase, with Origin's climbing 2.4% to A$11.85 by 032125 GMT after rising as high as A$11.96.
The joint venture already had superior reserves levels compared to three competing projects in Queensland state. It has agreed to sell some of its coal-seam-gas to rivals, but some analysts were nevertheless concerned about all four projects' ability to deliver enough gas reliably through their early lives.
A rival project involving Santos Ltd. recently revealed a US$2.5 billion cost blowout to US$18.5 billion after boosting spending on coal-seam-gas drilling.
Origin also announced a 3% rise in annual revenue from its exploration and production operations to A$856 million as higher commodity prices offset a 4% fall in production.

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