Proven (1P) reserves have increased by 560% and probable (2P) reserves by 68%, Arrow said this morning. Arrow has a 60% stake in Tipton West; Beach Petroleum holds the remaining 40%.

The reserves upgrade is part of an ongoing multi-field Surat Basin certification program and other reserves increases are expected in coming months.

“Production from Arrow’s Surat Basin projects continues to increase with the current gross field production rates from Arrow-operated fields of 38 million cubic feet per day and Arrow net sales of approximately 23 terajoules a day,” the company said.

“Combined Surat production levels have increased by a further 10% in the last two months. This performance will, in turn, lead to further reserve upgrades.”

The company now has wells producing more than 1MMcfd in both Kogan and Tipton fields, said Arrow chief executive Nick Davies.

“We have always believed the wider spaced wells we are using in the Surat would lead to a gradual build up to a sustainable production level for optimal investment.

“As we step out from the initial development areas we continue to expand our reserves base and refine our well completion techniques.”

The Tipton JV is in the early stages of two pilots in the deeper Taroom coal seam and the Tipton reserves upgrade includes Taroom reserves in the 2P category for the first time.

“The two Tarooms pilots are extremely encouraging and are currently producing a total of nearly million cubic feet per day with the rate continuing to increase,” Davies said.

These Taroom certifications provide further confidence that reserves will be added from on-going Tarooms work on the Kogan and Daandine CSM projects, according to Arrow.

Certification of Tarooms reserves are of particular value as development of these seams will require significantly reduced investment through sharing of infrastructure with existing, co-located Juandah seams wells, Davies said.

“The early success of the Tarooms pilots is particularly exciting as it will allow maintenance well drill and expansion of the existing fields to occur at significantly reduced capital cost by using the existing gas gathering and water handling infrastructure and well-site equipment,” he said.

Reserves certification work for Daandine and the areas between the Tipton and Daandine Field and for the Meenawarra area to the south of Tipton is also currently underway. Reserves exploration and appraisal and Moranbah Gas Project reserves recertification work are also being undertaken in the Bowen Basin.