Work on the project will commence immediately, with an aim to make first electricity sales before the end of this year, according to Arrow.

Separately, Arrow has executed a gas tolling agreement with a subsidiary of the Australian Pipeline Trust. This agreement, which is conditional on APT board approval, provides for the ownership and operation of the Daandine Power Station facility by the subsidiary.

“The agreement establishes a commercial mechanism for Arrow to feed its Daandine field coal seam gas into the power station and to off-take electricity for sale by Arrow to retailer Country Energy under a long-term power purchase agreement,” Arrow said.

The 100% Arrow-owned Daandine CSG field will be initially developed with 15 wells to produce a total of 2 petajoules per year of gas supply to the power station.

Nine of the proposed 15 development wells at the Daandine Field have been drilled and completed to date. The remainder will be drilled in the second quarter, Arrow said.