The sale was made to 50/50 joint venture partner, CS Energy, two months ahead of Arrow’s contractual obligation to supply first gas.

The Kogan North Joint Venture has an agreement to supply 4PJ per annum of gas to Queensland government-owned CS Energy from the Kogan North field for 15 years.

Arrow company secretary JPK Marshall said Arrow Energy was now the first company to commercialise CBM from the Surat Basin.

“This highly significant milestone for the company and the Surat Basin coal seam gas industry was achieved as part of the final commissioning of the Kogan North Central Gas Processing Facilities (CGPF),” Marshall said.

“Arrow has achieved its first gas sale revenues just over 12 months from committing to the development of the Kogan North field."

In addition, production at Kogan continues to increase from its current standing of 2 million cubic feet per day (2.11 TJ/d), according to Marshall.

“Arrow continues to lead the industry in this basin with the most gross sales contracted, most gross sales memoranda of understanding and greatest number of identified potential projects,” he said.

“This first revenue represents a major step forward towards Arrow’s goal to become Australia’s number one CSG producer with targeted gross sales of 45 PJ per annum by 2010.”

The Kogan North project development was mostly funded by Arrow's joint venture partner, CS Energy, while Australian Pipeline Trust paid for the gas processing and compression facilities.