Arrow selected an interval from 565 metres to 610 metres for flow testing. Within that interval there was approximately 26 metres of net coal, while overall there are 70 metres of net coal interpreted (of similar quality to that being tested) in the interval between 150 metres and 750 metres.

When shut-in, the water built up to surface in approximately 4 minutes with a residual shut-in well-head pressure of 100 psi – demonstrating potential over-pressure in the coals, according to Arrow.

The company said all of these are indicators of a prospective coal seam gas discovery within a Tertiary aged coastal basin, and given the high permeability of the coals, with the potential to flow gas at substantial rates.

Arrow has applied for a Petroleum Lease (PLA 206) over the discovery and was also granted an Authority to Prospect last year that overlies the remaining prospective coastal Tertiary basins in east central Queensland.