Arrow Energy has said its Kogan North production pilot is performing as predicted with gas flowing at rate of 250,000 cubic feet day just 38 days after commencing long-term production testing. Arrow said gas flow rates will continue to increase on a daily basis.

Arrow is using the results of the pilot production to establish commercial feasibility for a full-scale production for up 12 petajoules per year for its development agreement with CS Energy.

The budding CBM player is also investigating the sale of gas to local markets in order to establish early cash flows.

In another good sign for the emerging CBM industry, Queensland Gas Company earlier said it was expanding its Berwyndale South pilot project after recording good gas flow rates from five pilot wells fitted with new high-capacity water pumps.

Also in the news recently was the financial closure of the proposed CBM-fired Townsville power station.