Origin chairman Kevin McCann said the company has declined the offer due to witnessing “a continued strong interest in the CSG sector, including the announcement by Shell to acquire an interest in Arrow Energy’s CSG tenements.”\n\nOrigin is in the process of inviting proposals from suitably qualified and experienced parties to test the value of its CSG assets through a competitive process. The company will assess the tenders with further information to be provided to Origin’s shareholders. \n\nIn rejecting BG’s original proposal on May 30, the board gave careful consideration to relevant information including an increasing appreciation of CSG valuation said Mr McCann. \n\nMr McCann emphasised the receipt by Origin of a CSG reserves report highlighting a significant increase in Origin’s 2P and 3P reserves and contingent resources and the new valuation benchmark set by Petronas’ partnership with Santos for the Gladstone LNG Project.\n\nOrigin’s CEO Grant King said “Notwithstanding BG’s contentions, Origin reaffirms it Proven, Probable and Possible CSG reserves at 10,122 PJ.”\n\nIn addition, Origin announced that is has acquired the 640 MW gas-fired Uranquity Power Station for $A700 million from Babcock and Brown Power. The power station is due to be completed in 2009. \n\nThe company has also committed to proceed with the 550 MW Mortlake Power Station project at an expected cost of $A640 million. Located in western Victoria the development is scheduled to be completed by 2011.