LOCATION
The Kogan North project is located in the Surat Basin, 40km west of Dalby in south-east Queensland.

EQUITY
Arrow Energy 50%, CS Energy 50%

FIRST GAS
First gas was sold from field under contract to CS Energy (Queensland's largest electricity generator) on 23 January 2006.

GAS CONTRACTS 
Arrow and the Queensland Government-owned electricity generator CS Energy hold a 15-year contract to supply 2 petajoules (PJ) per year to CS Energy (total gas supply 30 PJ). CS Energy takes ownership of the gas at the inlet to their gas processing facility, located in close proximity to Arrow’s production fields at Kogan North and Daandine. The gas is transported via the Roma to Brisbane Pipeline to CS Energy’s Swanbank ‘E’ power plant near Ipswich for use in electricity generation.

GAS PRODUCTION
Total production at Kogan North for the year ended 30 June 2010 was 3.39 PJ, a 17.2 percent increase compared to the prior year. Total gas production for the quarter ended 30 June 2010 was 0.98 PJ.

RESERVES
A gross reserves base has been certified at the Kogan North field of 46 (1P Reserves), 164 PJ (2P Reserves) and 306 PJ (3P Reserves).

PRINCIPLE EXPLORATION TARGETS
Walloon Coal Measures CSG

CENTRAL GAS PROCESSING FACILITY
The Central Gas Processing Facility (CGPF) at Kogan North is owned and operated by the APA Group. The APA Group charges a tolling fee to process the raw gas from the Kogan North field under a usage agreement. The initial layout of CGPF consists of three gas compressors to compress the gas to Roma to Brisbane Pipeline operating pressure, and a dehydration unit to dry the gas to sales gas specification. The facility is designed for future expansion with minimal additional cost when required.