UPDATE: Arrow Energy Says Fisherman's Landing LNG On Track

Arrow Energy Ltd. (AOE.AU) Thursday said Liquefied Natural Gas Ltd. (LNG.AU) is on track to make a final investment decision on its LNG project in Queensland state by the first quarter of 2010, and ship first gas by late 2012.

Arrow's statement is in line with previous guidance it provided in April, but differs slightly to an LNG Ltd. statement issued July 1, which said it "continues to make significant progress towards FID in December 2009."

Arrow has agreed to provide gas to LNG Ltd.'s project at Fisherman's Landing, in which it also has an equity stake.

Brisbane-based Arrow also said Thursday that it expects to release an upgraded reserves statement before releasing its full year results in August.

It said gas production net to Arrow in the three months to June 30 rose 19.4% on the previous quarter to 3,659 terajoules.

Arrow sold 30% of its local coal seam gas assets to Royal Dutch Shell (RDSB.LN) last year and has agreed to provide gas to the Anglo-Dutch company's proposed LNG plant at Gladstone in Queensland, as well as to LNG Ltd.'s smaller-scale terminal.

By Ross Kelly, Dow Jones Newswires; 61-2-8235-2957; [e-mail]