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Australia's largest coal seam gas play Arrow Energy anticipates a new level of growth, expanding into different products such as compressed natural gas, small scale LNG and gas to liquids power generation.
Arrow's CEO Nick Davies says the merger with fellow coal seam gas company CH4 has increased the group's commercial and technical expertise, along with an expanded geographical spread. Arrow is also looking for growth internationally, focusing on gas hungry India.
“The company has been formed from two major players in the coal seam gas market that were in the Queensland market. Combined they have a market capitalisation of $250 million so it’s a substantial company,” Mr Davies said.
“We have a very substantial technical resource base in the company and that together with improved financial strength, gives us a lot of encouragement for the future.”
“We think we have a great outlook and the new strategy will outline what that outlook is.”
Following the merger, Arrow Energy’s market capitalisation will be in excess of $250 million.
The company now incorporates 6000 shareholders including over 35 financial institutions one of which is the New Hope Corporation who are 60 percent owned by Washington H. Soul Pattinson’s.
“The combined strength of the new company in terms of human resources is very promising,” Mr Davies said.
“We have a collection of people with experience deep in the coal seam gas industry, in particular we have three people who have served as chief executives of coal seam gas companies.”
Mr Davies said the company plans to follow a slightly different direction following the merger. Arrow will concentrate on gas products as opposed to simply supplying electricity.
Over-supply and higher coal prices contributed to the change in direction.
“The margins in the electricity industry are going to be squeezed because of an oversupply of electricity and relatively low domestic coal prices,” he said.
“We expect future margins to gas sales to electricity industry to be fairly tight so we are going to concentrate on higher margins, in particular, we are going to look at different products from gas.”
“Those products could be anything from compressed natural gas; small scale LNG; gas to liquids or environmentally advantaged power generation using environmental credits.”
Arrow currently has two producing projects in Queensland, the Moranbah Gas Project is one of the largest coal seam gas projects in Australia and the Kogan North Gas Project which is an earlier stage of development.
“In 2006 we will be supplying approximately 15 percent of Queensland’s gas needs as operator and in 2007 that should rise to over 25 percen,” Mr Davies said.
“Besides those projects we have approximately 12 – 15 other projects in the appraisal leg and we have plans to bring all of those forward as quickly as we can and we anticipate as a company producing 50 petajoules per annum net in about three years from now.”
Arrow's CEO Nick Davies says the merger with fellow coal seam gas company CH4 has increased the group's commercial and technical expertise, along with an expanded geographical spread. Arrow is also looking for growth internationally, focusing on gas hungry India.
“The company has been formed from two major players in the coal seam gas market that were in the Queensland market. Combined they have a market capitalisation of $250 million so it’s a substantial company,” Mr Davies said.
“We have a very substantial technical resource base in the company and that together with improved financial strength, gives us a lot of encouragement for the future.”
“We think we have a great outlook and the new strategy will outline what that outlook is.”
Following the merger, Arrow Energy’s market capitalisation will be in excess of $250 million.
The company now incorporates 6000 shareholders including over 35 financial institutions one of which is the New Hope Corporation who are 60 percent owned by Washington H. Soul Pattinson’s.
“The combined strength of the new company in terms of human resources is very promising,” Mr Davies said.
“We have a collection of people with experience deep in the coal seam gas industry, in particular we have three people who have served as chief executives of coal seam gas companies.”
Mr Davies said the company plans to follow a slightly different direction following the merger. Arrow will concentrate on gas products as opposed to simply supplying electricity.
Over-supply and higher coal prices contributed to the change in direction.
“The margins in the electricity industry are going to be squeezed because of an oversupply of electricity and relatively low domestic coal prices,” he said.
“We expect future margins to gas sales to electricity industry to be fairly tight so we are going to concentrate on higher margins, in particular, we are going to look at different products from gas.”
“Those products could be anything from compressed natural gas; small scale LNG; gas to liquids or environmentally advantaged power generation using environmental credits.”
Arrow currently has two producing projects in Queensland, the Moranbah Gas Project is one of the largest coal seam gas projects in Australia and the Kogan North Gas Project which is an earlier stage of development.
“In 2006 we will be supplying approximately 15 percent of Queensland’s gas needs as operator and in 2007 that should rise to over 25 percen,” Mr Davies said.
“Besides those projects we have approximately 12 – 15 other projects in the appraisal leg and we have plans to bring all of those forward as quickly as we can and we anticipate as a company producing 50 petajoules per annum net in about three years from now.”
