Bow Energy

Shares / Stock Code

BOW

Stock Exchange / Sharemarket

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Bow Energy Limited (BOW) is an Australia-based company that is engaged in oil and gas exploration. It is also engaged in discovery and commercial production of coal seam gas (CSG). It focuses on developing its CSG projects in the Bowen and Surat Basins. The Comet CSG Block is the central of the three Bowen Basin blocks and has an area of 974 square kilometers. Bow is focusing on two areas within the Comet block, the Blackwater CSG field and the Comet prospect. The Don Juan CSG Project is a joint venture between Bow (55%) and Victoria Petroleum NL (45%) involving two tenements, ATP 771P and ATP 593P located in the western Surat Basin approximately 40 kilometers north of Roma. The Norwich Park Block has an area of 874 square kilometers with adjacent tenements operated by BG Group and Arrow Energy. The Gunyah block is located midway and along trend between Anglo Coal’s Moura/Dawson River and Santos’ Scotia/Peat major CSG project areas.

BOW’s primary focus is oil exploration in Queensland’s primary oil basins, the Cooper-Eromanga and Surat-Bowen Basins, where it has a net acreage position of over 40,000sq km. BOW has an inventory of 193 oil leads and prospects. This is a large number of prospects so BOW is seeking farm-in partners where it has a high level of equity. Bow has a 45% interest in the Don Juan Coal Seam Gas JV in the Surat Basin where the first well, Taringa South-1, recorded a stabilised flow of 370,000cfd.

Bow Energy Limited's (BOW) tenements in the Cooper-Eromanga and Surat basins are adjacent to commercial oil and gas fields. The areas have existing infrastructure, lowering costs for future commercial production activities. BOW has entered into the Don Juan coal seam gas (CSG) joint venture in the Surat Basin. The current directors of BOW have senior management experience in CSG and were directors of ASX-listed CSG production company Arrow Energy during its formative years. Most oil is sold into global spot markets, whilst gas is typically sold under long-term contract arrangements with utilities, large industrial users and steel plants. Key competitors include Rio Tinto, BHP, CH4 Gas Ltd (CHX) and Bounty Oil & Gas (BUY).

Bow Energy History

Bow Energy (BOW) has experienced management team with a proven oil-finding track record. The company has collated an extensive geological database and has generated many drilling prospects. The focus is on best prospects with highest leverage. Keeping a reasonably high level of equity in blocks with JV partners often funding wells is value-creative on a risk reward basis. A move into the CBM industry has already resulted in exploration success. Steady revenue from CBM could fund a hike in oil exploration.