Daily sales to buyer CS Energy are continuing following the sale of an initial small quantity of gas on Monday, Arrow told the Australian Stock Exchange on Thursday.
Fifteen development wells on the Daandine field have been drilled and completed, while the surface gathering network is also in place, according to Arrow.
Dewatering of the field is now underway and gas production is ramping up with a view to the long-term supply of gas to the Daandine Power Station, which is currently being constructed.
Arrow’s first electricity sales from the Daandine Power Station are expected by the end of this year.
Ramp-up gas from Daandine is being sold to CS Energy until the power station is ready to accept gas, through the existing Kogan North gas processing and compression facilities, located next to the field.
The Daandine field has 24 billion cubic feet (Bcf) of probable gas reserves and 337Bcf of possible gas reserves, as certified by independent consultants, Netherland, Sewell and Associates.
About 30Bcf will be used for the 27.4MW power station, with electricity sales to be made to Country Energy, the New South Wales Government-owned electricity retailer, under a long-term power purchase agreement.
The Daandine field is Arrow Energy’s third producing project, behind Moranbah and Kogan North. First sales gas from Arrow’s fourth project, Tipton West, is expected in the first quarter of next year.
