OilVoice - Arrow Energy Responds to BG Group Media Release

Arrow Energy Responds to BG Group Media Release

Monday, February 09, 2009

Arrow Energy Limited refers to the announcement by BG Group (BG) today outlining its intention to make an off-market takeover offer for Pure Energy Resources Limited (Pure).

On 22 December 2008, Arrow announced it had reached an agreement with Pure to make a recommended cash and scrip offer for all the issued shares in Pure which Arrow does not currently own. Arrow lodged its bidder’s statement for Pure with the Australian Securities and Investments Commission (ASIC) and the Australian Securities Exchange (ASX) on 5 February 2009 and the offer is due to open on 12 February 2009.

Arrow notes that BG’s offer for Pure is conditional on Foreign Investment Review Board (FIRB) approval and a 50.1% minimum acceptance condition. Arrow currently has a 19.98% shareholding in Pure.

Arrow will be discussing this latest development with Pure’s directors in accordance with the terms of the Takeover Implementation Deed entered into by Arrow and Pure.

Arrow’s Managing Director, Nick Davies, commented “We have presented a compelling offer to Pure shareholders, including Arrow scrip which is significantly undervalued particularly if you use the BG offer for Pure as a valuation guide. We think the scrip component of Arrow’s offer is attractive to Pure shareholders both from a value and tax1 perspective. By accepting Arrow’s cash and scrip offer, Pure shareholders will be afforded the opportunity to share in further upside associated with Pure and Arrow’s assets and the CSG sector in general.”

Going forward Arrow will make further announcements as appropriate.

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