Australian company Arrow Energy has signed a 30-year production sharing contract with PetroChina covering the Dajing Block in China. Under the agreement, Arrow will act as operator in the partnership to explore Dajing for unconventional gas. The Daijing Block covers 3969 square kilometres in the East Junggar basin in the Xinjiang Autonomous Region in China’s far west. In a statement, Arrow said the first year’s work programme comes with a US $4 million price tag and includes drilling 14 exploration wells.

Arrow hopes to start full commercial development from 2014, adding that expected gas sales building should hit about 20 billion cubic feet.

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