The company is issuing 7,000,000 convertible notes at 40 cents per each and 3,065,000 ordinary shares at 30 cents per share. Funds raised will go towards Arrow's share of the exploration and development programs on its projects in the Surat and Clarence Moreton Basins near Brisbane, and the Queensland Coastal Basins near Gladstone.

Another $1.75 million will be raised from a non-renounceable pro-rata entitlement issue of convertible notes to existing shareholders. Shareholders will be entitled to subscribe for one 40 cent convertible note for every 20 ordinary shares held.