India is the world's fifth largest energy consumer and is committed to exploiting its significant coal seam gas potential. Arrow Energy drilled its first international well in India in May 2008.
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In August 2006, Arrow was awarded three license blocks in India with Indian Government estimated coal seam resources in excess of 10,000 petajoules (PJ). All three blocks (Raj Mahal, Tatapani-Ramkola, and Mand-Raigarh) are in partnerships with leading Indian gas company GAIL (India) Limited and Energy Infrastructure Group of Sweden. Indian power company, Tata Power Limited, is also a partner in the first two blocks.
In May 2008, Arrow drilled its first overseas well at the Tatapani-Ramkola (TR) block as part of a wider exploration program. Eighteen core holes have now been drilled within our two coal seam gas blocks in the State of Chhattisgarh state. Drilling of pilot wells could start as early as January 2010 depending on review of results from the initial drilling program.
In January 2009, Arrow Energy signed a Memorandum of Understanding (MOU) with Indian government owned ONGC Limited to cooperate in coal seam gas development. The focus of this MOU will be potential cooperation on existing ONGC blocks from previous coal seam gas licence rounds in India. Following the signing of this general MOU, work will immediately begin to formulate specific commercial agreements on defined coal seam gas assets.
Arrow is also currently negotiating with Indian coal mining companies aimed at extracting methane ahead of mining activity in some of the most gassy coal mining areas in Jharia and Bokaro coalfields.
Other opportunities are under review.
