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Industrial development in Queensland is powering ahead, driving the state’s need for increased energy and underwriting the future of the coal seam gas industry.
Arrow Energy, is a trailblazer in this emerging industry. According to CEO Nick Davies Arrow is rapidly moving towards its goal of becoming Queensland’s largest coal seam gas producer.
“The fundamentals of Arrow’s strategy have been to take a very large land position (80,000 square kilometres), and everything we do revolves around that very large land position,” Mr Davies said.
Mr Davies said Arrow’s projects are designed around a low-coast, low-risk philosophy.
“We achieve this by drilling wells in areas where we know there’s going to be some gas present because it’s been seen during coal exploration.”
“Having done that, we’ll get customers lined up, and then proceed to do the reserve certification and appraisal of the field, once we know we’ve got customers.”
“That leads to a very low exposure of funds, and means that since Arrow’s inception in 2000, we’ve actually only spent $40 million to get us to the position we’re at today,” he said.
The coal seam gas industry is new to Australia, but in the United States it’s a well-established industry, where it’s been operating for 20 years and provides about 10 percent of the country’s daily gas requirement.
Arrow’s main tenements are in Queensland’s Surat Basin, where the potential for coal seam gas production is said to be enormous.
“In Australia people are not quite so used to it. They don’t have the trust built up in it that they do in the US, so there’s a lot of ‘wait and see’ from investors and analysts alike.,” Mr Davies said.
“What that requires is some level of confidence in the industry, so that what they’d like to see is projects coming on stream and companies becoming successful, delivering to their customers and meeting their commitments.”
“That’s been Arrow’s entire focus for the last year and a half, to get projects on stream, get gas into the pipeline and show people that this all works and it will evolve in the same way that it’s evolved in the United States.”
Arrow Energy, is a trailblazer in this emerging industry. According to CEO Nick Davies Arrow is rapidly moving towards its goal of becoming Queensland’s largest coal seam gas producer.
“The fundamentals of Arrow’s strategy have been to take a very large land position (80,000 square kilometres), and everything we do revolves around that very large land position,” Mr Davies said.
Mr Davies said Arrow’s projects are designed around a low-coast, low-risk philosophy.
“We achieve this by drilling wells in areas where we know there’s going to be some gas present because it’s been seen during coal exploration.”
“Having done that, we’ll get customers lined up, and then proceed to do the reserve certification and appraisal of the field, once we know we’ve got customers.”
“That leads to a very low exposure of funds, and means that since Arrow’s inception in 2000, we’ve actually only spent $40 million to get us to the position we’re at today,” he said.
The coal seam gas industry is new to Australia, but in the United States it’s a well-established industry, where it’s been operating for 20 years and provides about 10 percent of the country’s daily gas requirement.
Arrow’s main tenements are in Queensland’s Surat Basin, where the potential for coal seam gas production is said to be enormous.
“In Australia people are not quite so used to it. They don’t have the trust built up in it that they do in the US, so there’s a lot of ‘wait and see’ from investors and analysts alike.,” Mr Davies said.
“What that requires is some level of confidence in the industry, so that what they’d like to see is projects coming on stream and companies becoming successful, delivering to their customers and meeting their commitments.”
“That’s been Arrow’s entire focus for the last year and a half, to get projects on stream, get gas into the pipeline and show people that this all works and it will evolve in the same way that it’s evolved in the United States.”
