Reuters today reported that in the year ending June 30, 2007, the Brisbane-based company expects a cash flow of $8-10 million.
“Next year this will go to $20-25 million and grow to over $10 million in 2010-11,” the newswire quoted chief executive Nick Davies as saying.
“We have three producing fields, 15 more we plan to bring into production, and of course within the next few years we will be developing many more projects.”
The company yesterday announced that it and Indian gas transporter GAIL (India) are together eyeing out coal seam methane opportunities in China and Indonesia, which they hope to settle by March next year.
Arrow was recently awarded three CBM exploration blocks in partnership with GAIL, Sweden’s Energy Infrastructure and Mumbai-based Tata Power. It is the company’s first foreign venture.
Arrow will be operator of the three blocks.
GAIL said it hopes to assign its technical manpower to Arrow, as an initial arrangement, to gain “technical expertise” through work in Australian CSM blocks.
Reuters reported that Arrow anticipates an average yearly capital expenditure of $15 million for exploration and development of its Australian coal bed assets.
It said Arrow is looking at creating another company for its overseas assets and is planning a partial overseas listing of the entity in the next six months, in which it will retain a majority interest.
