Arrow updates Indonesian CBM exploration activities

The following is an excerpt taken from Australia?s Arrow Energy Quarterly Report released on Tuesday. (Ed)

Drilling to commence on Sangatta West CBM Block

Arrow and its Joint Venture partner Ephindo plan to jointly operate a CBM Production Contract with Pertamina Hulu Energi Metan A, a subsidiary of state oil and gas company PT Pertamina, on the Sangatta West Block, in East Kalimantan.

Arrow and Ephindo are on schedule to start drilling four exploration holes in Sangatta West in November. The drilling contract has been awarded to Major/Pontil and rig certification has been provided by MIGAS. Land access agreements have been reached with site preparation expected to begin soon. Casing was delivered in October.

Work progresses on Tanjung Enim CBM PSC

Arrow was awarded a PSC with the Government of Indonesia over the Tanjung Enim block in South Sumatra. Arrow has the majority contractor share of the PSC at 45 percent participating interest, and will be the operator of the block as agreed between its partners. Arrow?s partners in the PSC are PT Pertamina EP (Pertamina) and PT Tambang Batubara Bukit Asam (Persero) TBK (PTBA), each with 27.5 percent participating interests.

Arrow, Pertamina and PTBA have agreed to a six-well exploration program due to commence in March 2010.(end of excerpt)