Arc Energy Takes Stake in Bass Basin Permit
ARC Energy Limited (ARC) and Origin Energy Resources Limited (Origin) are pleased to announce they have entered into a heads of agreement in relation to the farmin by ARC to exploration permit T/44P in the Bass Basin offshore Australia.
Origin currently holds the Permit 100% and under the terms of the agreement ARC will acquire a forty percent (40%) participating interest in T/44P with effect from the grant of the Permit on 26 February 2007, by reimbursing Origin's back-costs.
ARC will also have the option to acquire an additional 10% interest in the Permit by contributing 20% of the cost of a well to be drilled as part of the Permit work commitments prior to the end of the third permit year, together with reimbursing to Origin the costs associated with the 10% earning interest up to that date.
The agreement is subject to completion of formal documentation and the standard regulatory approvals.
The work program on the Permit will involve the acquisition of 2D and 3D seismic data currently scheduled for early next year and then the drilling of a well prior to the end of the third permit year. T/44P lies adjacent and to the south and west of T/18P which contains the White Ibis and Trefoil discoveries and the Permit is considered to have similar prospectivity to T/18P and T/L1 which contains the producing Yolla gas and condensate field. ARC is purchasing a 12.5% interest in T/18P and T/L1 from Wandoo Petroleum Pty Ltd.
Eric Streitberg, ARC's Managing Director commented:
"We are very pleased to be able to move quickly to consolidate our position in the Bass Basin
subsequent to our purchase of the interest in the BassGas project. This farmin fits very well with
our philosophy of holding large equities in prospective areas where we have access to or control of
existing infrastructure. Our evaluation of T/18P and T/44P suggests there is scope for substantial
additional gas and potentially oil reserves in this underexplored area."
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