--100% of the EP 129, L6, L8, PL 7 permits and licenses (Blina and associated oilfields); --100% of the Application for Exploration Permit 7/05-6; and --associated plant and equipment and infrastructure.
The interests are subject to a number of royalty and option agreements.
The acquisition was for a consideration of A$2.4 million and a 2% royalty. Furthermore, repayment of a Terratek Drilling Tools Pty Ltd loan and other adjustments of approximately A$400,000.00 due to Golden Dynasty are in addition to the stated consideration. The acquisition was subject to a number of conditions, including the receipt by Golden Dynasty of acceptance by the TSXV of the transaction and approval of the shareholders of Golden Dynasty. These conditions have now all been fulfilled and the transaction completed.
The assets are highly complementary to the Company's existing holdings in the area and provide it with an operation base, a foundation oil production operation and additional exploration exposure.
Arc Managing Director Eric Streitberg said:
"Arc's Canning Basin portfolio has been considerably strengthened in the time since we announced this acquisition and we are delighted that it has now been completed. The assets will provide us with backup and support for our operations in the Basin and we are also confident we will be able to increase the currently modest oil production. We are reviewing the exploration data base which has not been subjected to modern data analysis techniques and we are hopeful that we will be able to generate additional exploration targets in what to now has been the only producing area in the Basin.
"Planning for the exploration drilling program is well advanced and we are looking forward to getting finished with the rig in the Perth basin and getting on to the program in the Canning."
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