Arrow Energy Limited (AOE) and Royal Dutch Shell Group have signed the documentation to complete the third stage of their Alliance transaction. The company said this enabled the staged payment of the last of the upfront payments of US$155 million.

The company said receipt of these funds would bring the total amount received to date from Shell for the sale of 30% of Arrow’s interests in its Australian tenements and a 10% interest in Arrow’s Singaporean subsidiary, Arrow International to US$454 million.

The company said that with the Alliance now formally in place, Arrow would continue to work with Shell to systematically develop and monetise the 70 TCF of gross gas resource that Arrow had assessed on its tenements primarily through an export LNG project.

Arrow managing director Nick Davies said the alliance with Shell would assist Arrow to make the most of its upstream assets and expertise.

Under the Alliance agreements, Arrow said further funding would be potentially available to Arrow to assist the LNG monetisation plans.

Arrow said it could earn up to a further US$275 million in milestone related payments, which if achieved would bring the total consideration for the complete transaction to more than A$1 billion.

At 1120 AEDT, Arrow Energy shares were down 2c at $2.65.