Arrow eyes gas-rich future
Arrow Energy NL is blazing the coal seam gas (CSG) trail in Australia with the company recently racking up its first gas sales and a swag of new projects now set to follow.
Managing Director Nick Davies said the company’s first gas sale from its Kogan North project in the Surat Basin earlier this year was a milestone event, signaling Arrow’s ability to take the CSG projects from exploration through to appraisal, development and gas sales.
The success of this project has paved the way for rapid expansion of the Tipton West and Daandine fields which show indications of similar productivity.
“We intend to ramp up to our stated production target of 45 petajoules (PJ) per annum by 2010, with the aim of making Arrow Energy Australia’s number one coal seam gas producer,” he said.
He said Arrow was currently focused on bringing to market the company’s largest development project at Tipton West quickly followed by the Daandine field.
The Tipton West project, located in the Surat Basin about 20 km south of Dalby, is the second largest onshore gas field in Australia with quantity of reserves over 2000 PJ.
Seventy five wells are planned in the initial 10 PJ per annum development plan and first gas is scheduled for the early 2007. Development drilling is scheduled to resume at the Daandine field, with dewatering of the field due to start around mid-year.
The Daandine project is located directly to the south of the gas-producing Kogan North project, with rich tenements of CSG already discovered in the vicinity.
“The Daandine upstream project is designed to provide 2 PJ p.a. to a 27.4 MW power station, to be built on the Daandine site by Australian Pipeline Trust,” he said.
“Arrow will toll the Daandine gas through the plant and then sell the electricity to Country Energy under an agreed, long term Power Purchase Agreement, with first electricity sales planned to occur before the end of 2006.”
“We believe we will have the best margins in the industry and with a sizeable portfolio of opportunities, we are looking forward to another year of significant growth.”
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