OVERVIEW

In July 2006, Arrow had one producing field at Kogan North in the Surat Basin.  Since that time, we have increased our number of producing fields to four and improved the production at each of these fields to consolidate our transition from explorer to producer.  First gas was sold from our producing fields at Daandine and Tipton West in the Surat Basin throughout fiscal 2007 while the Moranbah Gas Project in the Bowen Basin was added to our portfolio following our friendly takeover of CH4 Gas Limited in August 2007.

The company plans to bring more producers on in time as we relentlessly pursue a net production target of 45 PJ per year by the end of fiscal 2010.

Arrow also realised its ambition of bringing the gas market to the wellhead by generating first power from the Daandine Power Station and exporting it to the grid in December 2006.