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Worldwide CBM Resources
CBM Resources Estimate Trillion Cubic Feet (TCF)
Conventional Gas Reserves - Trillion Cubic Feet
(TCF)

• North America 800
• Russia/Ukraine 700-3000
• China 1000
• Indonesia 450
• Australia 350
• India 300
• Produced worldwide to date 15

• Middle East 2565
• Eurasia 1953
• Africa 486
• Asia 392
• North America 265
• Central/South America 251
• Europe 201

TOTAL 5900
TOTAL 6112
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The Rapid Rise of the State of Queensland CBM
Queensland CBM Production

• CBM accounted for approximately 70 of
  Queenslands gas requirements last year
• CBM 2P reserves of around 200 BCM represents
  greater than 80 of gas reserves in Queensland
• Queensland Government estimates CBM resource
  level at more than 8000 BCM

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Arrow Energy in Queensland

• 90,000 sq km tenements
• Four projects producing 2.5 MMCMD - 20 of
  Queenslands gas demand
• Nearly 80 BCM of reserves on 2 Arrows land
• 350 MW of net power generation
• The Worlds first LNG from CBM plant planned for
  first LNG 2011

Townsville Power Station
Moranbah Project
Gladstone LNG
CQGP Opportunity
Surat Basin Projects
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Comparison US CBM Production 1989-2005 with
Australian CBM Forecast 2006-2022
US Australia
Total Resource Estimate / BCM 21,000 10,000
Production Rate 1989 (Aus 2006) MMCMD. 7.3 6.9
Wells Drilled 1989 (Aus 2006) 700 500
Wells drilled 2006 (Aus 2023) 7300 ???
Australia CBM production potential in
unconstrained market
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India Gas Supply and Demand Forecast
Source CRISIL 2007
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Potential Indian CBM Production based on
Australian/USA CBM growth profiles
Ultimate CBM capability could reach 60 MMCMD
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Arrow Australian Production Build
Note Excludes International Business
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Arrow International India -3 Blocks 39 well
drilling program about to start
Arrow Consortia Partners GAIL (India)
Limted Energy Infrastructure Group Tata Power
Corporation
Block State Area (sq. mi.) DGH Resource Estimate (Billion Cubic Metres) Arrow Equity Share ()
Raj Mahal Jharkhand 180 160 35
Tatapani-Ramkola Chhattisgarh 180 55 35
Mand-Raigarth Chhattisgarh 250 120 40
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India Exploration Appraisal Milestones
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Arrows International Business

• Current title to exploration blocks in India and
  Vietnam with approximately 50 wells to be
  completed in these two countries by end FY09.
• Advanced negotiations with coal miners and major
  local oil/gas companies to access multiple blocks
  in China and Indonesia.
• Each country targeting at least an Australian
  size business in 7 years.
• International targets of more than 2500 PJ
  reserves and 80 PJ p.a. of production in 7 years.
• Gas pricing across the region ranges from
  5.00-10.00 / GJ.

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Arrows Three Growth Initiatives

• Margin Growth Through Vertical Integration
• 370 MW of integrated power generation access
  existing or under development
• Worlds First CBM to LNG Plant
• Small, modular and fast LNG plant differentiates
  Arrow model
• Asias 1 CBM player
• Rapidly growing positions in China, India,
  Indonesia and Vietnam