ARC Energy-led JV Wins North Perth Basin Permit EP 437

ARC Energy Limited on behalf of the EP 437 joint venture, on behalf of its partners, announces that it has been granted Application L02/6 (also known as Application No. 2/02-03), as petroleum exploration permit EP 437 effective November 8, 2004.

The Joint Venture applied for the gazetted area L2-06 in the northern Perth Basin, located between Dongara and Geraldton, in April 2003. The Joint Venture was subsequently offered the permit as Application No. 2/02-03, subject to Native Title approvals. These approvals are now complete and the offer of the permit by the Minister for State Development has been accepted by the Joint Venture.

The process leading to the grant of the Permit has required the co-operation of all the parties involved and the Joint Venture is pleased to acknowledge the constructive and co-operative nature of the Native Title Parties in this process. We now look forward to undertaking a vigorous exploration program on the Permit.

EP 437 lies immediately to the northwest of the L1/L2 Production Licences and contains similar geological structures to the recent oil discoveries at Jingemia and Eremia. Numerous oil and gas shows have been encountered in previous drilling on the permit, however, none of the wells on the permit have been drilled on valid structural closures. The southern part of the permit has a relatively sparse grid of existing seismic coverage and a number of attractive leads have been identified. The permit work program for the first year is the acquisition of gravity and magnetics data with a 50 km 2D survey required for the second permit year.

The Terrex seismic acquisition crew will be acquiring the Denison 3D seismic survey for the L1/L2 Joint Venture to the south of EP 437 over the next few months and it is likely that, subject to joint venture and other necessary approvals, the 3D coverage will be extended into the southern part of EP 437. Additional 2D data may also be acquired on EP 437 at the conclusion of the 3D survey.

The activity in the general area, including drilling, seismic acquisition and infrastructure development means that there is an opportunity to accelerate the exploration program on this very prospective permit.

Participants in EP 437 are:
ARC Energy Limited – 33 1/3% (Operator)
CalEnergy Gas (Australia) Limited - 33 1/3%
Norwest Energy NL (via wholly owned subsidiary Westranch Holdings Pty Ltd) - 33 1/3%