Arrow signs LOI to Farm-in to two blocks in China

摘要

Arrow Global CBM Pty Ltd (ACGBM) and Orion Energy have signed a Letter of Intent for broad ranging co-operation in China. Orion is a US based privately owned energy company specializing in Coal Bed Methane ("CBM") operations and services, operating solely in China. It is the largest provider of horizontal drilling services to the rapidly growing Chinese CBM industry and is also the owner of two CBM concessions. Under the terms of the LOI: AGCBM and Orion will perform a joint technical and commercial study of two concession blocks, in China's premiere CBM basins of Ordos and Qinshu, in which Orion already has 70 percent upstream working interest. Arrow will earn 5 percent share in both of these blocks by virtue of performing the study and will have an option to farm in for a further 25 percent based on funding a work program to be agreed, up to a maximum of 10 million dollars.