Arrow announces reserves increase
Arrow Energy Limited (AOE) announced a 50.3% upgrade to proven and probable (2P) reserves. The company added that proven, probable and possible (3P) reserves were up 18.6%.
The company said that 2P reserves now totalled 6,150 PJ, while gross 3P reserves were up to 11,042 PJ.
“The company has added 3,458 gross 2P reserves in 12 months which substantially exceeded our target to add at least 1,000 PJ of gross 2P in 2009,” AOE said.
The company noted that after adjusting for the recent Shell pre-empt on Tipton West 2P reserves net to Arrow have increased 53.4% to 3,690 PJ and net 3P reserves have risen 13.8% to 5,781 PJ.
This increase in 2P reserves followed a similarly large 2P reserves increase in June 2009.
The company said this demonstrated its ability to convert the estimated gross gas resource of 74,000 PJ that exists on its Australian tenements to commercial reserves.
“[This] was a direct result of the $300m exploration and appraisal program, the maturation of our gas fields and our technical and reservoir knowledge,” AOE said.
Looking ahead, the company said exploration and appraisal activity over the next twelve months would focus on expanding its 3P footprint through further conversion of our contingent resource, with 3,000 PJ of gross 3P expected to be added in 2010 and gross 2P reserves additions expected to be 1,500 PJ.
On Monday, Arrow Energy shares slid 5c to $4.07.
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