Arc Energy Completes Wandoo Acquisition
ARC Energy has completed the acquisition from Wandoo Petroleum Pty Ltd of WPP's interests in the BassGas and Cliff Head fields, together with associated exploration acreage. No pre-emptive rights were exercised in respect of any of the assets being acquired, other than in respect of the Wandoo oil field, as previously advised.
The net amount paid by ARC on completion of the Acquisition was US$175.1 million. This was determined based on total consideration of US$189.6 million and a completion adjustment in favour of ARC of US$14.5 million. The net amount payable by ARC is US$5.5 million lower than previously estimated, reflecting the underlying strength of the cash flows generated by the assets and attributable to ARC since the effective date of the Acquisition, 1 January 2007.
Mr. Eric Streitberg, Managing Director of ARC, said:
"We are delighted to have completed the Acquisition, particularly for less cash than we expected! The strong cashflows being generated by BassGas and Cliff Head together with the recent exploration success in our expanded position in the offshore Perth Basin highlight the upside for ARC from the Acquisition. The success of the Acquisition has been reflected in the ARC share price and in the very strong support ARC received from shareholders for the share purchase plan. The Acquisition forms a platform for the ongoing growth of the Company. Not only has ARC significantly enhanced its production and reserves, it is also commencing a period of intensive high impact exploration. The recent expansion of the Company's highly prospective Bass Basin interests, together with the upcoming Canning Basin drilling program and the ongoing development of the onshore and offshore Perth Basin are the basis for an exciting period in the Company's development.
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