Confirmation Arrow Energy to Acquire Bow Energy

Press Release September 26, 2011

Australia’s Arrow Energy Holdings Pty Ltd confirmed that it has entered into a Scheme Implementation Agreement with coal seam gas company Bow Energy Ltd under which Arrow has agreed to acquire all of the shares in Bow for a cash consideration of A$1.52 per Bow share. The offer values Bow at A$535 million.

Bow Board members have unanimously recommended shareholders vote in favour of the offer, in the absence of a superior proposal and subject to an independent expert concluding that the offer is in the best interests of Bow shareholders.

The offer allows Bow shareholders to realize the value of their Queensland coal seam gas (CSG) assets, and is subject to customary conditions including regulatory and Court approvals, and Bow shareholder approvals.

Arrow is a 50-50 joint venture CSG company owned by subsidiaries of Royal Dutch Shell plc and PetroChina.

The acquisition of Bow contributes to Arrow’s opportunity to expand each of the two trains of its proposed LNG project in Queensland from 4.0 mtpa currently planned.

Through the support of its shareholders, Shell and PetroChina, Arrow has the technical capabilities, capital backing, major project experience and LNG marketing ability to facilitate the sustainable growth of Queensland’s CSG and LNG industry.

Bow is expected to hold a shareholder meeting in December to allow shareholders to vote on the offer. Subject to approvals, the transaction is expected to be implemented in January 2012.

Supported by its sizable gas reserves, the Arrow LNG project continues to make good progress. In August, Arrow awarded contracts for the Front End Engineering and Design phase of its downstream development, and earlier this month Arrow issued a tender for the design of a six kilometre tunnel to transport gas and other utilities between Gladstone and Curtis Island.