In addition, the Queensland government has granted Arrow a new petroleum lease for the Daandine development.
PL230 covers 141 sqkm in ATP 790P, about 30km west of Dalby. The lease allows for the production and sale of hydrocarbons from the Daandine and adjacent areas within PL230, Arrow said. 2P gas reserves of 362 BCF and 24BCF of 3P reseves have been certified.
Arrow Energy described the independent report, compiled by US-based Netherland Sewell and Associates Inc, as a “significant milestone” for Daandine, which is about 30km west of Dalby, Queensland.
The Daandine field is being initially developed to supply the Daandine Power Generation Project. With two petajoules of gas per annum required over the 15-year life of the project, Arrow says significant scope exists for future gas sales.
The Daandine Generation Project consists of a 27.4MW output power generation facility, immediately south of Arrow’s Kogan North project and co-located with the Kogan North compression facilities.
Upon achieving financial close for the project, Alinta will build, own and operate the plant, before transferring it to Arrow.
All output will then be sold to Country Energy under a long-term power purchase agreement.
Financial close is expected this month with first electricity sales planned for late this year.
The initial Probable (2P) reserves certification on the Daandine project involves the areas immediately surrounding four appraisal wells and a production test well drilled in the last six months by Arrow.
Arrow said further reserves certification of additional 2P reserves was likely during field development, as production wells were gradually drilled to drain the licence area, and thereby convert further Probable (3P) volumes to 2P and Proven (1P) volumes.
As well as the Daandine, Kogan North, and Tipton West projects in the Surat Basin, Arrow has a further 7 projects in early to advanced stages of exploration and appraisal.
These further projects in the Surat Basin, Clarence Moreton Basin and Nagoorin Graben, will be developed subject to continued positive appraisal results, to meet Arrow’s target of 45 PJ per year of operated gas production by 2010, it said.
