Don't they know you never tell the market in advance that you need to raise funds...
Arrow Energy Ltd. (AOE.AU) has asked advisors to examine ways to raise funds after taking on a greater role in the development of the Fisherman's Landing liquefied natural gas project in Queensland state, Chief Executive Nick Davies said.
Brisbane-based Arrow said earlier this month it had restructured its agreement with Liquefied Natural Gas Ltd. (LNG.AU) and will now own the LNG produced from the first train of its planned Fisherman's Landing LNG plant at the port of Gladstone.
"We've asked ourselves whether we have enough money to get us through to first production, and clearly the restructuring of the Fisherman's Landing project means that we have extra funding needs," Davies said in an interview with Dow Jones Newswires.
Arrow hasn't made a decision on how much money to raise or when, partly because there are a number of remaining commercial issues that need to be decided in relation to the Fisherman's Landing project, he said.
These issues include finalizing an agreement to sell LNG from the project to Toyota Tsusho Corp. (8015.TO), a trading company partly owned by car giant Toyota Motor Corp.
Davies said Arrow expects to make a final investment decision on the Fisherman's Landing project in the first quarter of 2010, in line with earlier guidance.
Arrow, which had A$253.4 million in cash at the end of December 31, will also receive a payment from Royal Dutch Shell PLC (RDSB.LN) when it makes a final investment decision on any LNG plant at Gladstone, Davies said.
Shell bought 30% of Arrow's coal seam gas reserves in Queensland in June 2008, and is planning a separate LNG plant at Gladstone.
AOE Price at posting:
$3.65 Sentiment: LT Buy Disclosure: Held
