OilVoice - Arrow Energy Announces Early Results from Australian Exploration Program

Arrow Energy Announces Early Results from Australian Exploration Program

Thursday, December 03, 2009

Arrow Energy reports some excellent progress from the early stages of Arrow’s planned $300m exploration and appraisal program. In particular:
• Excellent pilot well flow rates from the Moranbah Coal Measures (MCM) in the Saraji area of the Southern Bowen Basin
• Early gas breakthrough from MCM pilots in the northern Bowen Basin
• Intersection of a 12m thick seam in the Rangal Coal Measures (RCM) (approximately three times the prognosed thickness) immediately north of the South Walker Creek field
• High gas contents and excellent coal thicknesses from RCM wells in the southern Bowen Basin.
• Further encouraging flow rates from the Fort Cooper Coal Measures (FCCM)
• Very encouraging results in areas further away from current core development and in deeper parts of the Surat Basin.
• A completed frac pilot in the Clarence-Moreton Basin which had good coal thicknesses and is now awaiting production hook-up.
• Consequent 3P reserves upgrade expected in the New Year

Arrow has identified 74,000 petajoules of reserves and resource across its 65,000km2 of tenements in Queensland and northern New South Wales.

Arrow recently announced that it was embarking on a $300m exploration and appraisal program targeting the following:
• To prove and secure adequate 2P reserves to supply domestic and LNG export contracts.
• To deliver 2P reserves at an annual rate of approximately 1,000 PJ (Gross).
• To prove deliverability of reserves at a rate necessary to meet LNG supply requirements.

This program is the largest of its type ever undertaken by Arrow and comprises several key activities:
• characterisation of the coal resource extent and structure, achieved primarily by the drilling of stratigraphic wells and/or recording of 2D seismic,
• characterisation of coal reservoir character, achieved primarily by the drilling of cored wells for sampling and testing,
• pilot production testing.

The program will focus on the largest resource areas of the Bowen, Surat and Clarence Moreton Basins, and a more gradual approach will be employed to explore and develop resources in the “Coastal” Basins.