Gas and oil explorer Bow Energy (ASX: BOW) says this year's exploration has positioned it as the holder of one of the largest uncommitted 3P gas reserves in Queensland.

During the past financial year the company recorded a 256 per cent increase in 3P certified reserves and more recently, increased its 2C resource by over 230 per cent.

"Importantly, these gas reserves and resources are strategically located approximately 250km west of Gladstone, which is set to host Queensland's export LNG industry along with growing domestic gas markets, chairman Howard Stack told the company's annual general meeting on Monday.

According to him, Gladstone's position in the CSG to LNG story has become clear with Federal Government approval of BG's and Santos' LNG projects, State Government approval of Origin's LNG project, and BG announcing Final Investment Decision for its project last month.

The extent of this opportunity is reflected in the targets Bow has set for calendar year 2011, he said.

"In addition to increasing our 3P reserves target to 6,200 petajoules, our primarily focus will be to deliver commercial gas flows across multiple gas fields, this being a pre-requisite in achieving our 2P reserves target of 1,250 petajoules by the end of next year."

"A third party study has identified over 13 Trillion Cubic Feet of gas in place across Bow's CSG projects and our efforts will continue to be directed to proving and developing this resource."

Bow will have four pilot projects pumping and testing early in 2011 with preliminary results expected late in the first quarter of 2011.

The company said additional permeability enhancement pilots and lateral drilling programs are planned for various other locations around our Bowen CSG fields through 2011 with the aim of achieving commercial flow rates across multiple fields and achieving 1,250 petajoules 2P end of 2011 reserve targets.

Bow said it strengthened its financial position this month by completing an equity capital raising of A$48.4 million, which was supported by new and existing Australian and international institutional investors.

"Combined with cash on hand, this will fund activities targeted to deliver commercial gas flows, early cash flow from electricity sales, gas reserves of 6,200 petajoules 3P and 1,250 petajoules 2P by end of 2011 across Bow's 100 per cent owned Bowen Basin CSG fields and most importantly multiple pathways to commercial development of our CSG fields."

"We also have a share purchase plan capped at $30 million currently on offer which will give all Bow shareholders at our record date the opportunity to purchase up to A$15,000 worth of Bow shares at the same price as the institutional investors paid," Mr Stack said.