Arrow Energy CEO Says More Reserve Upgrades To Come

Arrow Energy Ltd. (AOE.AU) Chief Executive Nick Davies said Friday the company will continue to deliver reserve upgrades and has the capability to supply both the Fishermans Landing and Curtis Island liquefied natural gas plants in Queensland state.

The Sydney-based group said Friday it has more than doubled its proven and probable reserves, or 2P, gas reserves to 2,581 petajoules.

"This is a huge reserves increase but there is much more to come - we have barely scratched the surface and we have much more to do," Davies told reporters.

Arrow's current 2P reserves are about a quarter of the size of those of Woodside Petroleum Ltd. (WPL.AU), Davies said, and these reserves have come from only one 10th of Arrow's coal seam methane land.

"We do have the capability to supply multiple LNG trains through both Fisherman's Landing and Curtis Island," he said.

Davies said having a strong reserves position was important for potential lenders for Arrow's projects, as were certainty on the sites for LNG plants and offtake.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; [e-mail]