Maui reserves update

30 April 2007

Maui reserves update

An annual reassessment of gas reserves by the Maui Joint Venture parties has resulted in Contact’s P85* reserves increasing by 37.5 petajoules (PJ).

In October 2006 Contact announced it had secured rights to 170 PJ of natural gas under its Right of First Refusal agreement with the Maui Joint Venture parties. Forty-two per cent of this entitlement came from P85 gas volumes, with the remaining 58 per cent from P50** volumes, which was dependent on this reserve being firmed to P85 status.

The recent reassessment has seen the Maui Joint Venture parties firm 60.8 PJ of natural gas from P50 to P85 status, of which Contact has rights to 61.63 per cent, or 37.5 PJ.

“In October last year Contact indicated it had confidence that its P50 entitlements would be firmed to P85 reserves, and this increase is consistent with Contact's expectations,” said Chief Executive David Baldwin.

* P85
means the quantity of gas estimated at a probability of 85 per cent or greater to be recovered from the field

** P50 means the quantity of gas estimated at a probability of 50 per cent or greater to be recovered from the field

ENDS

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