Arrow Energy Potential Gas Find

Submitted by Share Trading on 9 April, 2010 - 11:35

Arrow Energy (AOE) and Apollo Gas (AZO) have found a new potential gas resource in Newcastle, New South Wales. The resource is help in a partnership between the two companies.

Arrow Chief Executive Officer Shaun Scott said “These early test results confirm the presence of a significant gas resource located only 15 kilometres from an established gas market in Newcastle.” The company said one production well had intersected 34 metres of net coal contained in 14 seams between one and eight metres thick, while the second well intersected 37 metres of net coal in 18 seams.

Arrow recently is subject to a takeover which is under review by the Foreign Investment Review Board, for most of the company assets to PetroChina and Royal Dutch Shell, but intends to keep international assets and some Australian assest to spin off in a new company called Dart Energy. The new company will be include Arrow's coal seam gas exploration assets in China, India, Indonesia and Vietnam, as well as its shareholdings in Apollo Gas, Bow Energy and LNG Ltd.