MIXED QUARTERLY RESULTS FOR ARROW
Written on the 16 February 2010
ARROW Energy Limited (AOE) has recorded a 46.9 per cent net increase in electricity sales last quarter, but net gas sales were down 9.1 per cent due to poor performance at the Daandine field.
The Daandine field is related to Arrow’s increased ownership of the Braemar 2 Power Station, but because of this internal ownership there were lower recorded third party gas transactions than usual.
The company, headed by Shaun Scott (pictured), 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 (EIS) during the quarter and a petroleum pipeline licence is expected to be awarded in January.”
The quarterly report also says a second drilling is underway in Indonesia after initial drilling showed net coal thickness of 55 metres with good gas content.
AOE shares fell 1.8 per cent today to $4.34.