During recent flow testing, an initial rate of 1,400,000 cubic feet per day of gas was produced, leveling off at a rate of 120,000 cubic feet per day after an extended flow, the company said yesterday.

This outstanding initial rate confirmed coal permeability and flow potential, Arrow said.

But Arrow said it needed to drill a core hole to test coal desorption pressures, rates and volumes, in order to assess the size of the resource.

It would also need to determine the optimum completion design for maximising long-term flows from this high-potential accumulation.

Silverdale could be commercialised quickly because it is adjacent to gas markets, according to Arrow.

Silverdale-1 is the first CSG exploration well drilled in the Laidley sub-basin of ATP 641P.

Arrow has a 100% interest in Silverdale.