Brisbane, Sep 19, 2006 AEST (ABN Newswire) - Arrow Energy N.L. ("Arrow") is pleased to announce an accelerated reserves certification plan for the greater Moranbah area to meet the emerging and growing needs of gas customers in the Gladstone to Townsville corridor. In particular there has been a significantly increasing number of enquiries from potential customers following the ongoing uncertainty with respect to the likelihood and timing of the PNG Gas pipeline project.
Streaming Video:
http://www.investortv.com.au/video.asp?v=17
Use the above link to view streaming video of CEO Nick Davies discussing Arrow's post CH4 merger strategy.
Arrow has discussed with independent reserve certifiers, Netherland, Sewell and Associates, a program of the order of $9 million to $14 million over the next 12 months to target additional 2P reserve certification of at least 700 PJ of gas. This quantity is additional to current, on-going reserve certification work. This targeted amount of reserves would enable additional new long term gas sale contracts to be written for up to 35 PJ p.a.
This reserves certification program will be focused on known productive seams in step-out areas.
Additionally, at least one well will target a test of the Fort Cooper Coal Measures ("FCCM"). Typically the FCCM exhibits net coal thicknesses of up to 50 metres and there have been previously measured high gas contents. The FCCM seams are laterally extensive across the Moranbah area but their possible resource has not previously been included in Moranbah area resource assessments. If proven to be productive, these seams could add multiple TCFs of contingent resource as yet uncertified in the FCCM.
This accelerated investment in reserves certification in this highly productive coal seam gas area is a key component of Arrow's post CH4 merger strategy to drive growth in shareholder value by building on the skills and asset base of the merged companies and dynamically focusing on those opportunities that can provide the most significant value add to the company.
This program will provide significant reserves to anchor the Moranbah-Gladstone pipeline and achieve reserves critical mass to underpin Arrow's coastal Queensland high margin products (Gas to Liquids, LNG, CNG) strategy.
Streaming Video:
Use this link to view streaming video of CEO Nick Davies discussing Arrow's post CH4 merger strategy:
http://www.investortv.com.au/video.asp?v=17
Contact
Mr Nicholas Davies, Chief Executive Officer
Phone 61 7 3105 3400
E-Mail info@arrowenergy.com.au
Website www.arrowenergy.com.au
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