Following is a media statement from Arrow Energy concerning the detection of minute traces of benzene at the Moranbah Gas Project.

Arrow Energy is the operator of the Moranbah Gas Project, in which AGL is a joint venture partner.

Paul McWilliams

Company Secretary

Notification of Monitoring Results 

Arrow Energy has advised Government authorities and landholders this afternoon that its monitoring tests have detected minute traces of benzene in three of 60 fluid samples taken in the northern Bowen Basin, in Central Queensland.

These preliminary results relate to two wells in the area of Arrow's Moranbah Gas Project (MGP) and one well in an adjoining exploration tenement (ATP364).

Water from these wells is managed in accordance with regulations governing coal seam water and is contained in lined, fenced ponds for treatment or removal. There are no registered water bores within five kilometres of the three wells, and coal seam water is not used for feedstock. However as a precaution, Arrow will conduct testing of water from bores closest to the area.

Arrow has not used chemicals containing benzene (or other members of the BTEX group of chemicals) in its fraccing fluids.

Consequently, immediate further independent testing will be undertaken to verify the results. Separately, more research will be conducted to determine if the benzene is naturally occurring, or introduced by another means. BTEX group chemicals can be present in oil based lubricants, diesel and petrol.

Arrow has briefed the Department of Environment and Resource Management (DERM), Department of Employment Economic Development and Innovation (DEEDI) the Isaac Regional Council, and AGL Energy, Arrow's joint venture partner in the MGP.

BTEX is an acronym for the group of chemicals benzene, toluene, ethylbenzene and xylene

About AGL

AGL is Australia's largest integrated renewable energy company and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on over 170 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has Australia's largest retail energy and dual fuel customer base. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.