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go further. Worldwide CBM Resources. CBM Resources Estimate – Trillion Cubic Feet (TCF). Conventional Gas Reserves - Trillion Cubic Feet (TCF). Middle East 2565 Eurasia 1953 Africa 486 Asia 392 North America 265 Central/South America 251
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Worldwide CBM Resources CBM Resources Estimate – Trillion Cubic Feet (TCF) Conventional Gas Reserves - Trillion Cubic Feet (TCF) • Middle East 2565 • Eurasia 1953 • Africa 486 • Asia 392 • North America 265 • Central/South America 251 • Europe 201 • North America 800 • Russia/Ukraine 700-3000 • China 1000 • Indonesia 450 • Australia* 350 • India 300 • Produced worldwide to date ~15 TOTAL 5900 TOTAL 6112
The Rapid Rise of the State of Queensland CBM Queensland CBM Production • CBM accounted for approximately 70% of Queensland’s gas requirements last year • CBM 2P reserves of around 200 BCM represents greater than 80% of gas reserves in Queensland • Queensland Government estimates CBM resource level at more than 8000 BCM
Arrow Energy in Queensland Townsville Power Station • 90,000 sq km tenements • Four projects producing 2.5 MMCMD - 20’% of Queensland’s gas demand • Nearly 80 BCM of reserves on 2% Arrow’s land • 350 MW of net power generation • The World’s first LNG from CBM plant planned for first LNG 2011 Moranbah Project Gladstone LNG CQGP Opportunity Surat Basin Projects go further
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Comparison US CBM Production 1989-2005 with Australian CBM Forecast 2006-2022 Australia CBM production potential in unconstrained market
India Gas Supply and Demand Forecast Source: CRISIL 2007
Ultimate CBM capability could reach 60 MMCMD Potential Indian CBM Production based on Australian/USA CBM growth profiles
Arrow Australian Production Build Note : Excludes International Business
Arrow International – India -3 Blocks –39 well drilling program about to start Arrow Consortia Partners: GAIL (India) Limted Energy Infrastructure Group Tata Power Corporation go further
Arrow’s International Business • Current title to exploration blocks in India and Vietnam with approximately 50 wells to be completed in these two countries by end FY09. • Advanced negotiations with coal miners and major local oil/gas companies to access multiple blocks in China and Indonesia. • Each country targeting at least an Australian size business in 7 years. • International targets of more than 2500 PJ reserves and 80 PJ p.a. of production in 7 years. • Gas pricing across the region ranges from $5.00-$10.00 / GJ.
Arrow’s Three Growth Initiatives • Margin Growth Through Vertical Integration • 370 MW of integrated power generation access – existing or under development • World’s First CBM to LNG Plant • Small, modular and fast LNG plant differentiates Arrow model • Asia’s #1 CBM player • Rapidly growing positions in China, India, Indonesia and Vietnam