Arc Ups Stake in Canning Basin JV

Arc Energy Limited has reached an agreement in principle with Emerald Oil & Gas NL whereby Emerald will assign to Arc a part of its earning interest in the EP104/R1 licenses in Australia's Canning Basin.

Under the terms of the agreement, Arc will pay 12% of the agreed earning expenditure for a 6% working interest in the licenses. The agreement is subject to the finalization of formal documentation and the consent and approval of the other joint venture parties.

At the completion of the earning program Arc will have 38.95% interest in EP 104.

Arc Managing Director Eric Streitberg said: "We are very pleased to have additional equity in the Valentine prospect, which is the first well we will be drilling in our Canning Basin program and which has the potential to be a major gas-condensate discovery if hydrocarbons are present."