LOCATION
The Daandine project is located in the Surat Basin, 40km west of Dalby in south-east Queensland.
EQUITY
Arrow 70% (Operator), Shell Group 30%
FIRST GAS
The Daandine Project produced first gas in September 2006.
GAS CONTRACTS
Arrow supplies 2.2 PJ/year of gas to the Daandine Power Station under a gas tolling agreement with APA Group. This agreement allows Arrow to off-take electricity for sale to Country Energy under a long-term power purchase agreement. Arrow also has a 12-year contract to supply 11.5 PJ/year to the Braemar 2 Power Station from the Daandine field and our new Stratheden field.
GAS PRODUCTION
Total production at Daandine for the year ended 30 June 2009 was 4.01 PJ, a 48.6 percent increase compared to the prior year. The field was significantly expanded throughout the year with the number of producing wells doubling from 37 wells to 74 wells. A number of recently completed wells which are targeting the deeper Taroom seams are performing strongly. The Daandine Central Gas Processing Facility was completed during the fourth quarter. At year end, the field’s best well was flowing at an average rate of 1,100 GJ per day. Total production for the quarter ended 30 June 2009 was 0.93 PJ.
RESERVES
Reserve certifiers Netherland, Sewell and Associates Inc. (NSAI) of Dallas, Texas have confirmed a sizable reserves base at the Daandine field with the certification resulting in 1P, 2P and 3P gross reserves of 66 PJ, 304 PJ and 331 PJ respectively.
PRINCIPLE EXPLORATION TARGETS
Walloon Coal Measures CSG
