QUEENSLAND GAS COMPANY LIMITED8 March 2005 ASX ANNOUNCEMENT New...

QUEENSLAND GAS COMPANY LIMITED
8 March 2005 ASX ANNOUNCEMENT

New pumps increase Argyle East Pilot gas flows

Queensland Gas Company (QGC) reported today that gas wells at its Argyle East coal seam gas pilot in ATP620P in the Surat Basin have responded to the recent installation of larger pumps, with aggregate production approaching 2.3 million cubic feet per day over the past week. The Argyle #11 well which had been fitted with a larger pump from the outset continues to average over 1 million cubic feet per day (cfd), while the other two wells which access all of the Juandah coal seams are now each producing at over 400 thousand cfd. QGC expects further increases in gas flow rates from the Argyle East Pilot in coming weeks. QGC’s Managing Director, Mr Richard Cottee said that the increasing gas flow rates at Argyle East continue to provide confidence that the gas field will be supplying 7.4 petajoules of gas per annum to Incitec Pivot by 2007, with the possibility that early gas produced during the field development stage could be supplied to CS Energy as early as 2006. QGC (59.375%) and Pangaea Oil & Gas Pty Ltd (40.625%) are contracted to supply 74 petajoules of gas to Incitec Pivot Limited from ATP620P over 10 years commencing in 2007. The following graph provides the most recent production data for the Argyle East pilot and the map shows the location of the wells referred to in this report and the Argyle #12 well which will commence production testing in the next week.

For further information contact:
Mr Richard Cottee
Managing Director
Queensland Gas Company Limited
Telephone: (07) 3004 1000
Facsimile: (07) 3012 8411
Website: www.qgc.com.au