Arrow told the exchange that tests on wells Dundee-1, Darvall-1 and Dalmane-1 flowed water at rates ranging from 1500 to 3400 barrels of water per day with associated gas flows. Even though gas flow could not be measured due to the lack of a separator being on site, Arrow estimated it to be in the vicinity of 50,000 cubic feet per day.

"Preliminary results indicate that the permeabilities of the coals range from 200 millidarcies to over 2000 millidarcies, which is very high to extremely high permeability," Arrow said in a statement to the exchange. High permeability allows for quicker dewatering with early and potentially higher gas flows.

Arrow added because sandstones recovered from Dundee-1 were not fractured in any way and samples analysed had less than 1 millidarcy of permeability, this supports its interpretation that high flow rates are from coals and not from sandstones between the coals.

As for its current seven well coring program, Arrow told the market its first well - Kogan North-1 - is coring ahead at 235m and preliminary results indicate good gas contents and permeabilities.