The preferred independent expert has fully risk-weighted the valuation being aware of the current policy regime regarding UCG development, as well as the likely capital costs to bring the Blue Gum gas project into production.
If either of these key risks is resolved, independent Xstract considers there would likely be a substantial uplift in the valuation.
Last month, Carbon Energy announced an upgrade of its 2P gas reserves to 1,128 PJ (1Tcf or 188 million barrels of oil equivalent of natural gas equivalent), making its 2P gas reserves the fifth largest in Queensland.
The valuation has been undertaken before a Queensland government decision around the future of UCG in Queensland, Carbon Energy CEO Morné Engelbrecht said.
“This valuation reflects the current fully-risked valuation of our Queensland gas assets and follows the company’s recent gas reserve upgrade,” he said.
“As we proceed further down the path of de- risking our Blue Gum gas project in Queensland, we will continue to build on the value of our Surat Basin gas assets.”