Thiess Subscribe $750,000 in Queensland Gas Company's Initial Public Offering

Issue Date:  20 July 2000
Issued By:  Thiess Pty Ltd

Thiess Pty Ltd will subscribe $750,000 in Queensland Gas Company’s (QGC) initial public offering (IPO), a Prospectus for which was lodged with the Australian Securities & Investments Commission today.

The IPO of 60 million shares at 20 cents, fully underwritten by Wilson HTM and D&D-Tolhurst, will raise $12 million predominantly to fund the exploration and appraisal drilling of QGC’s coal bed methane (CBM) gas interests in the Walloon Coal measures, located within south-east Queensland’s Surat Basin. Subject to the results of exploration and appraisal activities, it is expected that funds from the IPO will also go towards initial CBM development costs.

QGC has entered into an agreement with Thiess under which QGC will appoint Thiess as project manager for all QGC-operated Walloon Coal CBM development, operation and maintenance activities for a five year period.

Thiess General Manager Qld/NT/Pacific Mr Murray Fox said the information set out in the Prospectus indicated that QGC’s planned exploration program was expected to prove up economic CBM reserves in the Surat Basin within three years, and that the Surat Basin had excellent potential for large scale commercial production of CBM.

“Based on the rapid growth in low rank coal basin CBM production in the United States within recent years, there is real potential for similar growth in Surat Basin CBM production” Mr Fox said.

Thiess’ move into the gas industry marks yet another step in the company’s ongoing growth. Over the past year, Telecommunications, Sugar and now Gas have been added to the company’s core businesses of Building and Civil construction, Mining and Minerals Processing and Environmental Services.

Offers of QGC shares will be made in the Prospectus. Anyone wishing to acquire QGC shares will need to complete the application form included in the Prospectus.

Ends.

Released by Thiess Pty Ltd - ABN 87 010 221 486

For further information contact:
Mr Murray Fox
General Manager Qld/NT/Pacific
Ph: (07) 3368 0200

Ms Fiona Murcott
Public Affairs Manager
Ph: 0419 758 196