ARC Energy Increases Position in Canning Basin
ARC Energy has secured significant additional holdings in the onshore Canning Basin in Australia's northwest in accordance with its program of consolidation of its holdings in the area.
The acquisition of the producing Blina and associated oilfields and surrounding exploration acreage complements the Company's existing holdings in the area and provides it with an operation base, a foundation oil production operation and additional exploration exposure.
The acquisition is from Golden Dynasty Resources Ltd., a TSX Venture Exchangelisted company, and includes:
- 100% of the EP 129, L6, L8, PL 7 permits and licenses;
- 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 is for a consideration of A$2.8 million and a 2% royalty. The acquisition is subject to a number of conditions, including the completion of due diligence by ARC and the receipt by Golden Dynasty of acceptance by the TSXV of the transaction and any required approvals of the shareholders of Golden Dynasty.
Commenting on the acquisitions, ARC Managing Director, Eric Streitberg, said:
"ARC's Canning Basin portfolio is very considerably enhanced by this acquisition. It is strongly complementary to our current holdings, it will provide us with reserves and production and valuable operating experience. The production operation is currently very well run and will give us excellent experience for when we bring on stream discoveries made in the forthcoming drilling program. Although reserves and production are currently modest with current production around 50 barrels per day, we will be looking closely at the wells to see if we can enhance production in the short term. We have plenty of experience with these sorts of fields in the Perth Basin and look forward to enhancing the production using our Perth Basin operating team.
We will plug the exploration areas into our current regional review and will almost certainly be drilling wells in the area in the coming dry season program.
We look forward to getting the deal completed and getting to work on the areas."
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