Located in the Ipswich/Clarence Moreton Basins ATP 644 the well encountered conventional gas during the final phases of drilling.

Preliminary results from the core hole drilling at Mount Lindesay-1, combined with the results from the recently drilled Swanbank-2, indicate that the Basins not only have potential for large commercial CBM resources, but also possible conventional gas in sandstones.

While coring at 580m a sandstone was penetrated that produced a controlled gas flow through the venting equipment at surface. The flow was not measured but Arrow is planning to conduct a test of the zone depending on operational conditions.

This is the first Arrow well in the basin to encounter conventional gas and was located on the basis of a one line seismic closure and the extent of the structure is, as yet, undetermined.

Mt Lindesay-1 was also the first CBM core hole test in the Clarence-Moreton Basin in Queensland and preliminary results suggest that the area has comparable CBM potential to the Walloon coals of the Surat Basin in Queensland. The well has been drilled to 580 metres and encountered 28 metres of net coal.

Arrow plans to drill additional CSG appraisal core wells in the permit and in adjacent ATP 643P (Arrow 100%).