Completion of the offer, which is open until the end of next week, will give Arrow a registry of around 7000 shareholders and a market capitalisation in excess of $250 million.

Chief executive Nick Davies said receiving more than 80% of the shareholder acceptances allowed Arrow to waive any remaining conditions under the merger terms.

The merged company would have three other CSM projects under development and about 15 appraisal projects.

“The merger gives Arrow the size and scale to grow quickly, with complementary asset portfolios and earning streams which will deliver diversified earnings, customers and markets,” Davies said.

“Our goal is to be able to broaden our revenue streams to include power generation, gas-to-liquids projects and also to seize international opportunities in India and elsewhere.”

Davies said the merged company would hold more than 80,000 square kilometres of tenements straddling the three main markets in Queensland.

“We are closer to Queensland gas markets than any other gas supplier, which gives us delivery advantages and puts us in poll position as a supplier of choice,” he said.

“We are targeting about 60 petajoules per annum of gas sales within the next three years or an equivalent of 27,000 barrels of oil per day, making Arrow a major supplier of energy to eastern Australia.”