SYDNEY (Commodity Online): Bow Energy Ltd (ASX:BOW) has announced the reserve upgrade for its Blackwater CSG field located west of Gladstone, Queensland, which would increase Bow’s total net 3P reserves 50% to 993PJ and is 32% more than Bow’s end of 2009 3P reserves target.

Independent consultants MHA Petroleum Consultants, LLC have now certified 886 petajoules (PJ) of 3P gas reserves within the Rangal Coal Measures of the Blackwater CSG field, located in Bow’s 100% owned Comet CSG block (ATP 1025P).

MHA also certified an additional 330 PJ of 2C contingent resources* within the Rangal coal seams at depths greater than 600 metres in the south eastern corner of the Blackwater CSG field. Bow intends to drill one deep core hole in the 2C area in the near term with the aim to convert the resources to reserves.

A further reserve increase from the deeper Burngrove Coal Measures in the Blackwater CSG field is anticipated prior to the end of 2009. The Burngrove coals are generally similar to the Rangal coals in coal thickness, gas contents and permeabilities but have slightly higher ash content.

The upgrade from the Rangal Coal Measures represents a 327 PJ (58%) increase over the previous interim reserves of 559 PJ certified for the Blackwater CSG Field and increasing Bow’s total net 3P reserves to 993 PJ.

This exceeds the company’s 2009 target of 750 PJ of 3P gas reserves two months ahead of schedule and exceeds the end 2010 target of 850 PJ of 3P gas reserves for the Blackwater CSG Field over twelve months ahead of schedule.

Located in the heart of one of Australia’s top rated CSG provinces, the Blackwater CSG field lies 230 kilometres west of the Port of Gladstone where a number of world‐class export LNG projects are being planned by third parties using CSG as a feedstock.

Bow has commenced investigations for pipeline access and routes from the Blackwater CSG Fields to supply both domestic and export gas markets.

Bow is currently investigating high yield power generation strategies initially in the Blackwater area. The strategy is to generate early cash flows from power generation whilst evaluating longer term supply opportunities.

Commenting on the reserve upgrade, Bow’s CEO – Commercial, John De Stefani, said, “The latest reserve upgrade demonstrates Bow’s ability to deliver its targets ahead of forecast.”

“In addition to this latest upgrade, Bow recently tripled 2P reserves on the Don Juan CSG project in the Surat Basin which delivered our end 2010 target for this project more than a year ahead of schedule,” Mr De Stefani said.

Positive results in the 2P drilling program on the Blackwater CSG field currently in progress should facilitate the development of a planned Bow 100% owned and operated power generator adjacent to the field.”

Bow has drilled seven fully cored wells in its exploration drilling program of the Blackwater CSG field and the results included the some of the key aspects including, average coal thickness of 18 metres covering the Rangal and Burngrove Coal Measures.

High gas contents ranging from 8 m3/tonne to 21 m3/tonne (Dry Ash Free) across the field between coals depths of 117 metres to 585 metres within the Rangal and Burngrove Coal Measures;Multiple permeable coal zones in at least two wells, BW 3 with up to 51 millidarcies and BW 4 with over 1 darcy measured permeability; andGas saturation data received to date indicating 100% saturated Rangal Coal Measures and 80% to 90% saturations in the Burngrove Coal Measures.

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