AGL announces reduction in 2P gas reserves
AGL Energy Limited (AGL) today announced that it has reduced its total proved plus probable (2P) gas reserves entitlement as at 30 June 2013 to 1,729 petajoules (PJ), a decrease of 341 PJ (16.5%) over the past 12 months. This is net of gas sales over the intervening period.
The main reason for the reduction was the proposed changes to New South Wales Government regulations which introduce exclusion zones affecting a number of AGL’s projects that have not been approved.
While the NSW Government is yet to finalise the changes to the regulations, AGL has considered it prudent to recognise a provision for impairment of the book value of these projects resulting in a $343.7 million pre-tax impairment charge as disclosed in AGL’s results for the year ended 30 June 2013, also announced to the market today.
Further details are included in Appendices A and B of the ASX & Media Release.