UPDATE 1-Australia Origin Energy: progressing on LNG talks

* Origin says venture progressing on talks for LNG sales

* Analysts say Origin needs to secure LNG customers quickly (Releads, adds details, background)

PERTH, July 31 - Australia's Origin Energy <ORG.AX>, a partner with U.S. ConocoPhillips in a gas export project, said the venture was progressing in gas sales talks but did not give a timeframe on when it expected to sign customers.

A spokeswoman for Origin, which has said the venture was in talks with a number of long-term buyers, said in an e-mail talks for gas were "well progressed" but gave no further details.

The ConocoPhillips-Origin gas export project, known as Australia Pacific LNG, is one of five projects in Australia's northeastern state of Queensland that plans to use coal seam gas as a feedstock for its LNG plants.

Credit Suisse said in a research report this week the venture needed to move quickly "to lock in markets to avoid being locked out entirely" by rivals such as Qatar, which has 38 million tons of capacity that can be diverted to Asia.

Rival coal seam gas-to-LNG projects in Australia, including those led by Britain's BG Group <BG.L> and Australia's Santos Ltd <STO.AX>, have already signed up customers to underpin the first phase of development and are also scouting for more buyers to support a planned expansion of their projects.

Origin said a jump in its coal seam gas reserves would be a key factor in supporting the project's final investment decision in late 2010.

Proved and probable (2P) coal seam gas reserves for the LNG venture have increased by 50 percent to 7,265 petajoules equivalent (PJe), while its widest estimate of gas reserves has risen by about 25 percent to 12,627 PJe.

Origin on Friday said total oil and gas production in the quarter ended June 30 was 25 petajoules equivalent (PJe), bringing full year production to 104 PJe, while full-year revenue increased 10 percent to A$572 million. [ID:nSYU006936] ($1=1.212 Australian Dollar)