All three wells were initially drilled earlier in 2001 with encouraging gas and water flows encountered during early testing.

JD Drilling (Chinchilla) has been contracted to supply the coring drill rig. Earth Data Pty Ltd, Geological and Earth Science Consultants will be taking the core samples and carrying out independent gas desorption testing of the cores.

The results of the coring program will determine a more definitive estimate of the gas content of the coals. Arrow's current plan, assuming the continuing encouraging results from the project, is to complete dewatering, permeability and pilot production tests as major components of a bankable feasibility study by the end of the 2002 calendar year, for the development of a commercial gas production project.