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Mustang Signs Collaboration Agreement With Fyfe Engineers Surveyors to Pursue Coal Bed Methane Projects

Wood Group Mustang's Australian affiliate, Mustang Engineering Pty Limited, has signed a Memorandum of Understanding with Fyfe Pty Ltd ("Fyfe") to jointly support coal seam gas/coal seam methane (CSG/CSM) projects. Mustang and Fyfe provide complementary skills to the energy market. Fyfe has significant expertise in land surveying, surface facilities and pipelines in the CSG sector while Mustang can deliver the process and facilities expertise to support clients in engineering, procurement, construction management (EPCM) for CSM production.

Australia holds the fifth largest coal reserves in the world, and the CSG market has seen significant growth over the last several years. Production increased an estimated 40 percent from 2007 to 2008 and reserves have doubled to 11.8 trillion cubic feet. The long-term need for gas by Asian economies is expected to be strong and many believe that over the next several years the annual amount spent to bring this resource to these key growing economies could exceed several billion US dollars a year.

"We are looking forward to working closely with Fyfe, and this agreement between our two companies provides a great resource for the energy industry in Australia," stated Mustang Australia Managing Director Alan Fotheringham. "We have the complete capabilities to jointly deliver CSG/CSM projects from field development through commissioning within our offices in Australia."

Fyfe Managing Director Mark Dayman stated, "We are very pleased that Mustang, a large international oil and gas engineering and construction services company, will be working with Fyfe, an Australian oil and gas company. This alliance will provide the necessary expertise for the full development of CSG/CSM and related projects."

Posted 18/06/09

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