Arrow Energy Ltd
(ASX:AOE) says it has found a potentially major coal-seam gas resource in New South Wales.
The company says it will move swiftly to confirm the gas production potential of the find.
According to The Australian, CEO of Australia Shaun Scott says early test results confirm the presence of a significant gas resource located only 15 kilometres from an established gas market in Newcastle.
Arrow says it could earn up to a 50% interest in the relevant NSW tenements where the find has been made, with the rights to the acreage contained in a new de-merged entity called Dart Energy.
Junior Apollo Gas Ltd (ASX:AZO) is a partner in the project with Arrow.
Arrow is currently in the process of selling a number of its assets to PetroChina and Royal Dutch Shell.
The assets it does keep, like the NSW tenements with Apollo, will be spun into the newly created Dart Energy following shareholder approval of the demerger.
Arrow earned $366.85 million in the 12 months to June 30, 2009.
