Darling Downs wins big with Arrow Energy’s new $100 million drilling contract

The multi-year contract, worth nearly $100 million, will see Silver City Drilling deliver up to 450 gas production wells as part of Arrow Energy’s 27-year Surat Gas Project (SGP).

Arrow Energy CEO Zhengxin Peng said the contract would sustain up to 12 jobs and more than $1.5 million in economic activity for the region each year of the contract.

“We’re excited to partner with Silver City Drilling for this next phase of the Surat Gas Project,” Mr Peng said.

“Silver City Drilling brings extensive experience in the coal seam gas industry here in the Darling Downs, and we look forward to leveraging their expertise in our operations.

“Since SGP construction began in late 2020, we’ve brought more than 275 wells online, increasing total production to 250 terajoules of gas per day – enough to power approximately 1.7 million homes daily.

“With Silver City Drilling, we plan to drill an additional 450 wells over the coming years, including 250 as part of the Surat Gas Project North expansion, northeast of Miles.”

Silver City Drilling owner and director Viv Oldfield said the company currently employs more than 25 full-time staff at its Dalby depot and across the region, with plans to expand as activity increases in 2025.

“Silver City Drilling has been part of the Dalby community for over seven years,” Mr Oldfield said.

“This contract strengthens our ties to the region and marks the start of a long-term partnership that benefits both Arrow Energy and the local community.

“We already work with more than 20 local businesses, contributing over $1.5 million annually to the local economy.

“With the support of Arrow Energy, we’re committed to building on this foundation to boost economic activity and support community networks.”

Under the agreement, Silver City Drilling will provide two rigs for an initial three-year term, with options to extend for an additional two years.

The first rig is set to begin operations in March, with the second mobilising in the second half of the year.

Both rigs will operate 24/7 to maximise efficiency, with their like-for-like design enabling shared personnel, servicing and parts to minimise downtime.

About the Surat Gas Project

Arrow Energy has been safely, responsibly and reliably producing natural gas in Queensland’s Surat Basin since 2004, driving a cleaner energy future.

The Surat Gas Project, underpinned by a 27-year gas sales agreement with Shell QGC, will include up to 2500 gas wells and produce 4000 petajoules of gas.

Over the course of the project, Arrow expects to create around 1000 jobs and invest tens of millions of dollars annually in local road upgrades.

Each year, Arrow Energy contributes approximately $2 million in social and community investments.

For more information, visit:

www.arrowenergy.com.au

Media contact:

Phone: +61 400 693 248        Email: media@arrowenergy.com.au

Arrow Energy Pty Ltd