A work-over rig will arrive on site early next week to run production tubing and pumps in each of the four pilot wells. The second of three monitoring wells is to be spudded this week with the third scheduled to spud early next week. The wells will be converted to production wells during the full project development later.

The third and fourth core holes in a four well program will be spudded this weekend. Besides providing valuable geological information as well as gas contents and gas saturations required for reserves definition, these holes will also be used as pressure monitoring stations during the pilot flow period. It is now estimated that the pilot will begin production before the end of March.

The current drilling activities are part of an appraisal and reserves certification program aimed at independent certification of gas reserves by mid year prior to full development of the field.

Arrow has entered into two MOU's to supply up to 6.7 PJ per annum of gas for 15 years from the Tipton West project area to Wambo Power Ventures and Ergon Energy.

The company's Boyne River -1 well (ATP 679), which encountered thick gassy coals at several intervals, was suspended in late January so that a post completion flow test of the well could be conducted using a smaller work-over rig. Severe wet weather has further delayed access to the site. A site inspection will take place this week.

Following the success at Boyne River-1, Arrow has applied for a Petroleum Lease which overlies the Nagoorin Graben.