Arrow Energy (ASX:AOE) Signed Dajing Production Sharing Contract
Sydney, June 1, 2010 AEST (ABN Newswire) - Arrow Energy Limited (ASX:AOE) said its subsidiary Arrow Energy (Dajing) Pte Ltd has signed a 30 year production sharing contract (PSC) with Chinese energy giant PetroChina (NYSE:PTR) (HKG:0857) (SHA:601857) for the Dajing block in China.
Arrow Dajing will partner with PetroChina to explore unconventional gas in the Dajing block, which is located in the East Junggar Basin in China's Xinjiang Autonomous Region. Under the PSC, Arrow Dajing will act as operator. The agreement is subject to regulatory approval in China.
Arrow is expected to demerge its international and certain Australian businesses and create a new ASX listed entity, Dart Energy Limited. The Dajing block will be a key asset in China for the Dart Energy.
Arrow's first year work program at Dajing involves the drilling of 14 exploration wells specifically aimed at determining key gas reservoir characteristics, and an assessment of the long-term commercial viability of the Dajing block.
Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: firstname.lastname@example.org