ARC Energy Sells Stake in East Timor Sea Permit to Clearview

Clearview has entered into a Heads of Agreement with ARC Energy Limited whereby Clearview will farm-into petroleum exploration permit AC/P32 in the Timor Sea and Clearview and ARC will enter into a co-operation agreement in relation to their activities in the oil and gas sector.

Clearview will obtain a 25% interest in the Permit in consideration for funding 37.5% of the costs of drilling one well on the Permit.

Exploration license AC/P32 is located in the Ashmore-Cartier area which lies within the western Timor Sea.

AC/P32 covers most of the Skua Trough/Montara Terrace within the Vulcan Sub-basin. The primary reservoir objectives are the Early to Middle Jurassic Plover Formation and Montara Sands. Secondary objectives are the Late Cretaceous Puffin Sandstone and Late Jurassic Vulcan Formation. Source is likely to be from the Late Jurassic marine shales in the Skua Trough and northern Browse Basin.

The depleted Skua oil field is 35 km to the west of the Permit and the Challis/Cassini oil fields are 20 km to the northeast. The undeveloped Talbot gas field and Montara oil and gas field are also located less than 10 km from the Permit.

The Permit is covered by 3D seismic data which has recently been reprocessed and has allowed the mapping of a number of large structures of which the largest and best defined is the Magnolia feature which has the potential to hold 80 to 100 million barrels of recoverable oil if hydrocarbons are present. Drilling of a well on this feature is planned for early 2005, subject to rig availability.

Equity in the permit after the farm-in is complete will be Norwest with 32.67%; OPC Australia with 25%; Bounty Oil & Gas with 17.33% and Clearview with 25%.

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