TIPTON WEST PROJECT

LOCATION
The Surat Basin, 20km south of Dalby in southeast Queensland, Australia

EQUITY

Arrow is the operator and holds 60%, with Beach Petroleum holding 40% through funding $35 million of field development.

FIRST GAS
First gas was sold from the field under contract to Braemar Power Partners on 6 February 2007.

GAS CONTRACTS

Gas Sales Agreements have been signed with Braemer Power Station to supply 9.5 Petajoules (PJ) per annum for 15 years (total gas supply 142.5 PJ).

GAS PRODUCTION

Gross field production for the year from first gas in February 2007 to 30 June 2007 was 1.006 PJ.  Arrow is targeting a gross production target of 7 PJ in fiscal 2008.

RESERVES

A large reserves base has been confirmed at the Tipton West field with certification resulting in 1P, 2P and 3P gross reserves of 167 PJ, 293 PJ and 2316 PJ respectively, making it potentially one of Australia’s largest onshore gas fields.

PRINCIPAL EXPLORATION TARGETS
Walloon Coal Measures CSG

Taroom Coal Measures CSG

TIPTON WEST GAS PROCESSING FACILITY

The Tipton West Gas Processing Facility is owned and operated by APA Group. APA charges a tolling fee to process the raw gas from the Tipton West field under a usage agreement.