outstanding initial flow rates confirm silverdale- ASX...

outstanding initial flow rates confirm silverdale- ASX ANNOUNCEMENT 29 June 2005

Outstanding Initial Flow Rates Confirm Silverdale-1 Well Reservoir Potential The Directors of Arrow Energy NL (Arrow) are pleased to advise that the Silverdale -1 well has been successfully flow tested. The well flowed at an initial rate of 1,400,000 cubic feet per day of gas levelling off at a rate of 120,000 cubic feet per day after an extended flow. This outstanding initial rate confirms the permeability and flow potential of the coals. Further work will be needed to determine the size of the resource, including a core hole, to test the desorption pressures, rates and volumes of the coals and to determine the optimum completion design needed to maximize long term flows from this high potential accumulation. Silverdale-1 is the first CSG exploration well drilled in the Laidley Sub-basin of ATP 641P (Arrow 100%). It is located near the town of Boonah, approximately 50 km southwest of Brisbane and 35 km from the gas fired Swanbank ‘E’ power station. Given its location adjacent to gas markets, early commercialisation of the project is possible 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]: www.arrowenergy.com.au