things are moving at anzoil 1. last week frank jacobs buys 9 mil shares from igm at twice the current market value
2. announcement today re venture with AOE, good potential and very close to markets
ATP 683P Pilot Project & Farmin
ARROW ENERGY NL 2002-09-02 ASX-SIGNAL-G
HOMEX - Brisbane
+++++++++++++++++++++++++ ANZOIL ELECTS TO PROCEED WITH FARMIN IN ATP 683P ADDITIONAL FARMIN TO ADJACENT BLOCK PILOT PROGRAM TO PROCEED
ANZOIL ELECTS TO FUND CSM PILOT SOUTH OF DALBY, SE QUEENSLAND
The Directors of Arrow Energy NL and Anzoil NL are pleased to announce that following excellent preliminary results of Arrows' CSM (coal seam methane) gas core test hole Tipton West-1, Anzoil NL has nominated its farmout area as the Dalby Block in western ATP 683P (see figure 1 for location). Anzoil has notified Arrow that it intends to proceed to earn 20% interest in the Dalby Block by funding a maximum of $1,000,000 towards the cost of a five well pilot program in the Dalby Block.
The Arrow-Anzoil Joint Venture's Tipton West-1 well drilled in the Dalby Block of ATP 683P intersected 29 metres of Walloon coals with high gas contents and excellent permeabilities. Mapping using seismic data previously acquired by Arrow confirmed that the Tipton West structure has four way fault-independent closure. The thick coals, high gas contents, excellent permeabilities and four-way structural closure combined on the Tipton West structure makes this area an ideal location to carry out a CSM gas production pilot program.
ADDITIONAL ANZOIL FARMIN AT JONDARYAN
Following the election to proceed with the earning of 20% in the Dalby Block of ATP 683P, Anzoil and Arrow have agreed on the terms of an additional farmin by Anzoil into the adjacent Bowenville Block in ATP 683P (see Figure 1). Anzoil has agreed to fund the costs of Jondaryan-1 located in the Bowenville Block for an option to earn up to 20% of the Bowenville Block by funding another $1,000,000 towards the costs of an additional CSM gas production pilot project.
Jondaryan-1 is located less than one kilometre north of the Roma-Brisbane gas pipeline and is due to spud early next week.
The Arrow-Anzoil Joint Venture is planning to commence a pilot program in the Tipton West Area in the Dalby Block of ATP 683P in the First Quarter of 2003. The Joint Venture partners are also considering using the $2,000,000 total Anzoil farmin costs to merge the two pilot programs into a ten well pilot gas production project on the Tipton West structure which may include on site electricity generation. The merged pilot proposal will increase the speed and efficiency of the installation of commercial gas production facilities.
Arrow will continue to pursue this strategy of funding development projects to avoid costly capital issues. Arrow is continuing gas sales and development discussions with a number of current and potential major gas users.
Arrow's Executive Directors, Nicholas Mather (041 7880 448, 07 3839 4766), Ron Prefontaine (07 3839 4766) or Stephen Bizzell (07 3832 6488) may be contacted in respect of any questions concerning this information.
Further information may be obtained from the company's website www.arrowenergy.com.au.