now $0.35 broker says worth $0.54

Arrow Energy NL
Emerging coal-seam-gas producer

Short Term: BUY
Long Term: BUY

Recommendation
AOE holds substantial prospective tenement positions, and is developing
coal seam gas projects, closer to its key SE Qld markets than any other
gas producers. Recent improvements in gas production at the Tipton
West project allay many earlier concerns about field productivity. This has
increased our confidence in AOE's transition to CSG producer. AOE's
Kogan North project is to commence delivery into its contracts from
October 2005.

AOE's share price is at a 32% discount to our valuation of $0.54/share. We have upgraded our recommendation from Spec BUY to BUY