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.
P Marshall
COMPANY SECRETARY
... I'm in and holding and watching