The increased reserves come from the company’s Bowen and Surat basin tenements and see Arrow’s net 2P reserves at 2,581 PJ, while net 3P reserves are at 5,412 PJ.
Arrow has listed five contributing factors to explain the increase in reserves. The first is the certification of 2P reserves across a significant portion of land in the Surat Basin for the first time. Secondly, there has been a substantial conversion of 3P to 2P reserves in areas between existing production fields in the Surat Basin. A third factor includes an additional increase in the depth increment within which 2P reserves are declared within the Moranbah Gas Project (MGP) due to continued good production at depth. There was also additional growth in 2P reserves in the “˜Q’ seam within the MGP area. Finally the delivery of the first reserves in the Fort Cooper coal measures also boosted the reserve figures.
The certification of the first 2P reserves from the Fort Cooper coal measures confirms that the previously untapped resources can now be commercialised. The certification also provides opportunities to access gas within existing production fields and to apply alternate well design and completion techniques to access gas within the Bowen Basin. Similarly the certification of 2P reserves in ATP 810 of the Surat Basin signifies an expansion of the reserves base in that area.
Arrow CEO Nick Davies confirmed that further certification work is currently in progress, placing the company on track to secure another reserves upgrade in the second half of the year.
Arrow and its partners now possess sufficient uncontracted reserves to supply at least 3MMt/a of LNG. This position supports Arrow’s drive to secure a final investment decision for LNG ltd’s Gladstone Fisherman’s Landing Project by the end of the first quarter in 2010.
Mr Davies stated that the objective for the 2009/10 exploration work program is “to accelerate and maximise conversion of the potential 70 Tcf of resources to 2P reserves.”?