Arrow to focus on Fishermans Landing
Arrow Energy Limited (AOE) said, in regards to its FY10 outlook, it would focus its efforts on an enhanced exploration and appraisal program and the targeted FID on the Fisherman’s Landing project in March 2010. The company added that it expected continued increases in gas production and electricity sales during the year.
Looking even further ahead, managing director and CEO, Nick Davies said the company forecast a 10-fold increase in net production over the next six years as Arrow continued to build its operations overseas and bring an estimated Australian gas resource of 74,000 petajoules (PJ) to market.
“Current global market conditions are challenging but the demand for gas remains strong,” Mr Davies said.
”Arrow is well positioned to build on the firm base that we have created and the partnerships that we have forged.”
In FY09 Arrow increased its gross proved and probable (2P) reserves by 186% to 4,092 PJ and said at its AGM it was investing $300 million in exploration and appraisal activities over the next 18 months.
”Our target is to increase gross 2P reserves by 1,000 PJ every year going forward,” Mr Davies said.
”Gross gas production is up 199% over the last three years and we estimate that by 2015 our net gas production will increase ten fold to 220 PJ a year from producing fields in Australia and Asia.”
Mr Davies also confirmed that Arrow and its joint venture partner Royal Dutch Shell are continuing to negotiate terms of gas supply to Shell’s proposed LNG facility on Curtis Island in Gladstone.
The company added that by 2015 it expects to be producing gas in Asia and undertaking extensive appraisal activities to prove up further reserves.
As at 1054 AEDT, Arrow Energy shares were down 8c to $4.14.
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