Arrow Energy Ltd., an Australian miner, announced today that the company has found a potential major coal seam gas resource in the state of New South Wales. Arrow also said that now it is planning to determine its production potential very soon. Arrow is doing the exploration work in NSW along with its partner Apollo Gas.

Arrow confirmed today that early stage exploration work has found the potential of a new gas resource located in PEL 458 and PEL 464, New South Wales.

The miner also said that now it is eyeing to know the exact production potential of the site. Arrow said that the exploration works will move rapidly to confirmation of gas production potential.

"These early test results confirm the presence of a significant gas resource located only 15 km from an established gas market in Newcastle," said Shaun Scott, chief executive of Arrow Energy.

Now the company plans to take the next step of pilot testing, aimed at proving reserves, as well as additional exploration boreholes to extend the reserve areas.

Arrow said that two exploration wells have been completed in PEL 458 and the work on two other is in progress.

The company also said that it plans to drill two stratigraphic bore holes in PEL 464 during April.