Following the discovery of gas at the Mt Lindesay-1 well earlier this year, Arrow has negotiated an agreement to begin providing energy and to meet all of the electricity and gas needs of AJ Bush by December 2005 for a minimum period of five years.

AJ Bush is currently the largest industrial energy consumer in the Beaudesert region and will take gas from the field as early as the appraisal and development phase.

“This Mt Lindesay -1 discovery, made in January 2004, is close to the town of Beaudesert and only 50 km from Brisbane and the Gold Coast making it the nearest gas deposit to these markets. The coal bed methane (CBM) exploration well Mt Lindesay-1 encountered 28m of gassy Walloons coal to a depth of 580m, in an area not previously explored for CBM,” said the company.

Mt Lindesay-1 also encountered conventional, high pressure gas at the base of the well. Further appraisal of both the Mt Lindesay CBM and conventional gas discoveries are scheduled to take place before the end of 2004.