Arc Adds Jeffery to Senior Executive Team

Arc Energy Limited has appointed Gary Jeffery as Executive Director – Operations effective June 5, 2007.

Jeffery will be a member of the ARC Board and have day-to-day responsibility for all operational aspects of the Company's business, including managing the Company's newly acquired interests in the Cliff Head and Wandoo oil fields and the BassGas project. Jeffery will report to Arc's Managing Director, Eric Streitberg.

In addition, Arc's Board has extended Streitberg's current contract for a further year until June 30, 2008. The terms of Streitberg's contract will remain unchanged. The appointment of Jeffery will allow Streitberg to devote additional time to the Company's business development activities.

Arc's Chairman, David Griffiths, said:

"The Board of Arc is delighted that Gary has agreed to join the Company as its Executive Director - Operations. Gary has extensive Australian and international experience in the upstream oil and gas business and has been instrumental in delivering a number of significant resource projects from their inception to final completion. We are very fortunate that an executive of Gary's experience is available to join Arc's Board and Arc's existing strong management team.

"We also welcome Eric's decision to extend his contract with the Company. Gary's appointment provides the Company with significant additional management and operational depth to drive the integration and ongoing management of Arc's newly acquired portfolio of production assets. This will enable Eric to focus on identifying and securing future growth opportunities for the Company."

Streitberg said:

"Gary joins Arc at a time when the Company has been dramatically transformed into a multi-basin production company with aggressive operated exploration programs in the Canning and Perth Basins and Yemen. I believe Gary has the experience and drive to effectively manage the Company's significant production assets and exploration programs to deliver significant value to shareholders. Gary's appointment underlines the scale of Arc's recent transformation and reflects the Board's focus on ensuring the Company has a strong core of dedicated and experienced senior management. Gary's appointment allows me to focus on identifying and delivering the new projects that will underpin Arc's future growth. I am very excited about where the Company is going and look forward to working with Gary to ensure Arc delivers for shareholders."

Jeffery, who has a BSc (Hons) in geophysics and geology from the University of New England (Australia), has more than 30 years' experience in the oil, gas and mining industries has worked for both large and small organizations in more than 30 countries. He was most recently the General Manager for Tap Oil Limited.