ARROW Energy Limited (AOE) has recorded a 46.9 per cent net increase in electricity sales last quarter, due to rising production at the Braemar 2 Power Station and increased summer demand.
CEO Shaun Scott says Arrow’s increased ownership in the station also played a significant role in boosting sales, but a 9.1 per cent decline in net gas sales is due to changes in recording practices to avoid double counting.
“What it all means is that more gas is being converted into electricity and by selling it as electricity we value-add to the gas,” says Scott.
The decline in net gas sales also comes from constraints at the Daandine field, which is related to Arrow’s increased ownership in the Braemar 2 Power Station.
“It’s primarily to do with some problems with the grid connection so there were constraints for output. There was also a day or two issue where a well started producing water slugs into the gas line, which it does anyway, but this time it was more than usual.” Arrow’s quarterly report says the company has signed a revised heads of agreement with LNG Limited which means Arrow will own all LNG produced at the Fisherman’s Landing project.
“Arrow is continuing with an environmental impact statement for the Surat Gas Project. The majority of gas produced from this project is expected to supply the Fisherman’s Landing LNG plant,” the report says.
“The gas will be delivered by the proposed Surat Gladstone Pipeline which is in the final planning stage. The Queensland Government approved the project’s environmental impact statement during the quarter.”
The report also says a second drilling is underway in Indonesia after initial drilling showed net coal thickness of 55m with good gas content.
Scott says Indonesian and other Asian operations are still in the early days, but have strong potential with high demand from their large populations.
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