ARROW TARGETS FISHERMAN’S LANDING FOR $167M

Written on the 1 April 2010

ARROW TARGETS FISHERMAN’S LANDING FOR $167M

ARROW Energy Limited (AOE) will acquire the Fisherman’s Landing LNG project after an agreement with Liquefied Natural Gas Limited (LNG) with a potential end value of $167.5 million.

Arrow will pay $51 million up front. The transaction will cost a further $116.5 million once various milestones on the project are complete, but the acquisition is still subject to due diligence and shareholder approval at a meeting set to be scheduled within 45 days.

The acquisition also includes a grant of 12.5 million options to acquire Arrow shares at an exercise price of $3.50, with a May 14 expiry date.

AOE managing director Nick Davies, says initial site works have begun on the site with project and design at an advanced stage.

“Arrow is excited to be taking full control of the construction and future operation of the world’s first CSG to LNG facility,” says Davies.

“The further simplification of the Fisherman’s Landing LNG development and the elimination of the commercial agreements with LNG Limited, will improve the ability to construct, finance and ultimately allow for greater flexibility in the operation of the plant.”

CEO Shaun Scott (pictured) says the project will be the next leg of growth for the company, following the success of the Braemar 2 Power Station.

The Environmental Impact Study (EIS) has been completed for the downstream part of the project and Scott expects a pipeline license to be issued soon, but the upstream EIS process is ongoing.

“We’re in the process of completing our EIS for the upstream parts but fundamentally what we’re doing in terms of the wells and facilities that we’re developing is really just expanding upon what we’ve already done,” he says.

“It’s a process that we need to go through and there’s work that we need to do to demonstrate from an environmental perspective that the proposed development and the way we deal with water, and gas and so on is being managed to the best extent.”

AOE shares rose 2.4 per cent today to $3.48.


Latest News

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter