AOE 0.00% $4.68 arrow energy limited

letter of intent for gas & electricity supply

  1. 22,691 Posts.
    ASX ANNOUNCEMENT – 10 January 2005

    The Directors of Arrow Energy NL [Arrow] are pleased to announce a Letter of Intent has been entered into with GELITA Australia Pty Ltd, for the direct supply of gas and electricity by mid 2006, for a supply period of at least 5 years.

    This opportunity follows on from the announcement by Arrow on 27 September 2004 for the supply of gas and electrical energy to A.J. Bush’s rendering plant in Beaudesert, and further supports the development commitment Arrow has for the region.

    GELITA Australia Pty Ltd is a part of the Asia-Pacific-Africa region of the global GELITA family of companies, which design, develop, own and operate gelatine factories around the world.

    GELITA employs over 2 300 people globally and is the world’s leading supplier of gelatine for food, pharmaceutical and photographic applications.

    Further appraisal drilling is planned for the Beaudesert region in the first quarter of 2005, to follow the success of the Mt Lindsay-1 discovery in January 2004.

    Subject to the field appraisal by mid 2005, there will be a field development tailored to meet the initial
    requirements of secured foundation customers in the Beaudesert region.

    The proposed arrangements will provide for a competitive energy price for GELITA, with the
    additional benefit of displacing coal consumption for the cleaner fuel source presented by Coal Seam Gas (CSG), whilst providing gas sales revenues for Arrow and a field
    development opportunity in an area targeted for industrial growth.

    For and on behalf of the Board of Directors
    JPK Marshall
    Company Secretary
    For further information contact:
    Stephen Bizzell or Nick Davies
    Phone: (07) 3303 0650
    Fax: (07) 3303 0651
    E-Mail: [email protected]
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