Arrow Plans to Acquire Fisherman's Landing Project

As a part of its plan to acquire 100 percent ownership of the Fisherman's Landing liquefied natural gas project which is located at Gladstone, the leading Australia base coal seam gas explorer and producer Arrow Energy (AOE) has flagged a $750 million float of the company’s global coal seam gas operation in either Hong Kong or Singapore. In addition to this, Arrow is currently holding talks with Gladstone Ports in an attempt to obtain land at Fisherman's Landing to more than double existing production plans, capped at about yearly 3 million tonnes of LNG. It is to be mentioned that the coal seam gas producer has recorded a $16.3 million worth of net loss for the first-half due to its development costs on the Fisherman's Landing.

Arrow made a $241 million profit during the first half of 2008-09 when the company sold a stake in its assets to Shell banking $307 million from it. The Operating earnings before interest, tax, depreciation and amortization were recorded as $18.6 million where a year earlier the figure remained at $2.7 million. The shares of the company went up by 10c hitting $3.64, even though it missed the expectations of the analysts as investors remained interested about the prospects of the LNG business. The chief executive of Arrow Australia Shaun Scott stated that the company is likely to hold around 70 percent stake of Arrow International in the float, something that is planned later this year. He also added that the float could also be valued by considering Shell’s 10 percent stake purchase in the global business for $75 million.

The company has plans to develop a pipeline from its onshore CSG fields which can transfer sufficient amount of gas to annually generate as much as 6.8 million tonnes of LNG. The company is currently planning to develop two 1.5 million tonnes of LNG production trains per year.