ARC Energy Strengthens Management Team

The Board of ARC Energy Limited is pleased to announce the further strengthening of the management structure of the Company with the appointment of Derrick O'Keeffe, the current Deputy Managing Director, to the position of Chief Executive Officer (CEO). In parallel with this, the current Managing Director, Eric Streitberg, will assume the role of Executive Director - Corporate and Business Development. The positions of Managing Director and Deputy Managing Director will be abolished.

To support the CEO and Executive Director in their new roles, the Company has appointed Paul Mullins as Chief Financial Officer (CFO) reporting to the CEO, and Dougal Ferguson, the Commercial Manager will report to the Executive Director.

The Board is delighted Paul has agreed to join the Company. He has a very strong financial and commercial background, having most recently been Chief Opertaing Officer of a private participant on the Otway Basin gas project, and prior to that the General Manager Commercial/ Chief Financial Officer for Ok Tedi Mining Ltd. Dougal has been the Company's Commercial Manager and Company Secretary, together with acting as CFO, for the past two years and brings an intimate understanding of the Company and its business to his re-focused role.

These changes will allow the CEO to focus on the executive management of the Company with the support of the CFO. The Executive Director will focus on the corporate development of the Company including the development of new business opportunities, and on shareholder relations, with the support of the Commercial Manager. Both the Executive Director and CEO will be directly responsible to the Board.

The Company is also actively recruiting up to two additional non-executive directors to ensure the composition of the board also reflects the growth and future prospects of the Company.

The appointment of new directors, together with the streamlining of management, will ensure ARC continues to be managed effectively under the supervision of an appropriately qualified and experienced Board during a period of continued growth in the size and complexity of the Company's business.