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COMET RIDGE LIMITED Capital/Financing Update 2004
64686_rns_2004-07-28_94da050d-4432-48be-b14f-3efb9795b32e.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT - 29 July 2004
LARGE GAS RESERVES INDICATED AT TIPTON WEST
ERGON ENERGY SALES CONTRACT VOLUME INCREASED
The Directors of Arrow Energy N.L. are pleased to announce provisional reserves certification and additional sales volumes at the Company's Tipton West Field.
Reserves Certification at Tipton West (ATP 683P, Dalby Block, Arrow 80%, Comet Ridge 20%)
Independent reserve certifiers, Netherland, Sewell and Associates Inc (NSAI) of the USA, have confirmed a large reserves base of coal seam gas at the Tipton West Field with the certification of 1,086 Petajoules (PJ) in the 3P category.
Gas flow rates continue to increase on the Tipton West Pilot since dewatering of the initial four Pilot wells commenced in May. Soon after start-up of the pilot, pressure responses were seen in monitoring wells 5 km and 7 km away. This was the first indication of the scale and continuity of the reserves now confirmed by NSA1. Three additional Pilot wells are currently being drilled to accelerate the dewatering of this substantial gas accumulation.
Gas Sales MOU's, to be wholly or partly supplied from the Tipton West Field, are in place for over 10 PJ per annum (with Ergon Energy (see below), BP and Wambo Power Ventures) for a total sales volume of 124 PJ. Other gas sales MOU's are currently under negotiation.
Ergon Energy Gas Sales MOU
Sales volumes pursuant to the Gas Sales MOU announced earlier this year with the Queensland Government owned energy retailer, Ergon Energy, have been increased. Pursuant to the terms of the revised MOU, Arrow will now deliver sales gas quantities of 3.2 PJ per annum to Ergon (compared with the 2.7 PJ p.a. previously announced) from the Tipton West field at delivery points in Oakey and Dalby (in SE Queensland), beginning 1 January 2006. Work is commencing immediately to embody these terms into a definitive Gas Sales Agreement.
For and on behalf of the Board of Directors
JPK Marshall Company Secretary
For further information contact: Nicholas Mather (0417 880 448) or Stephen Bizzell (0417 618 698) Phone: (07) 3303 0650 Fax: (07) 3303 0651 E-Mail: [email protected] Website: www.arrowenergv.com.au
This announcement has been approved by the board of Arrow and the technical information herein has been provided by a consultant (Dr R W Day) with more than 25 years experience in petroleum exploration.
The reserves estimates used in this statement were compiled by Mr. John Hattner of Netherland, Sewell & Associates, Inc., Dallas, and are consistent with the definitions of proved, probable, and possible hydrocarbon reserves that appear in the Australian Stock Exchange (ASX) Listing Rules. Mr. Hattner consents to the use of the reserves figures in this announcement.
Arrow Energy NL
ACN 078 521 936 Level 5, 60 Edward Street, Brisbane OLD 4000, Australia GPO Box 5262. Brisbane OLD 4001. Australia Telephone: 61-7-3303 0650 Facsimile: 61-7-3303-0651 Email: [email protected]