ARC Energy has secured significant additional holdings in the onshore Canning Basin in Australia’s northwest following the acquisition of the producing Blina and associated oilfields and surrounding exploration acreage from Golden Dynasty Resources.

The acquisition is part of Arc’s ongoing programme of consolidating its holdings in the area and follows a recent increase in its Point Torment area acreage from 8% to 32.95% and assumed operatorship of the areas.

Managing Director, Eric Streitberg said Blina is strongly complementary to Arc’s Canning Basin portfolio and will provide the company 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”, Streitberg said.

“Although reserves and production are currently modest with current production around 50 bopd, 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.”

The Blina acquisition includes 100% of the EP 129, L6, L8, PL 7 permits and licences, 100% of the Application for Exploration Permit 7/05-6 and associated plant and equipment and infrastructure. The acquisition is for a consideration of $2.8 million and a 2% royalty.

Meanwhile, Streitberg said the Point Torment/West Kora area contains proven oil and gas accumulations and the dual targets for the first well gives Arc a great start to the drilling programme. That will be Stokes Bay-1 in permit EP104/R1 and will kick off Arc’s dry season drilling programme in April/May 2007, subject to the usual operational constraints.

“Stokes Bay-1 will test the extent of the Point Torment gas accumulation and the underlying Valentine Prospect,” Streitberg said. “The technical review of the other prospects in our portfolio is progressing well and we are maturing numerous additional drilling targets to follow Stokes Bay-1.”

The new EP104/R1 Joint Venture participants are Arc Energy Limited (operator and 32.95%), Gulliver Productions Pty Ltd (14.8%), Indigo Oil Pty Ltd (5.5%), First Australian Resources Limited (8%), Pancontinental Oil & Gas NL (10%), Emerald Gas Limited (18.75%) and Phoenix Resources Plc (10%).

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The Blina acquisition includes 100% of the EP 129, L6, L8, PL 7 permits and licences, 100% of the Application for Exploration Permit 7/05-6 and associated plant and equipment and infrastructure.

The Northern Territory Minister for Business and Economic Development, Kon Vatskalis, has promoted gas exploration opportunities in the Timor Sea, and the Territory as a business location for offshore companies at a conference in Singapore.

Vatskalis attended the Offshore Southeast Asia Exposition and Conference in Singapore from 5–8 December and said the Territory’s oil and gas sector has tremendous potential for growth and development.

He said offshore exploration expenditure in 2005 totalled almost $200 million and companies have committed to spending over $500 million across all Timor Sea jurisdictions (excluding the Joint Development Area) from now till 2010.

“Heralding a new era of exploration in the region these developments have raised hopes for a second LNG train in Darwin in the near future”, Vatskalis said. “Onshore exploration activities in the Australia’s Northern Territory are also gaining pace.”

“Approximately 95% of prospective acreage has been taken up or is under application, including permits in the Amadeus, Pedirka, Georgina and Beetaloo basins, compared to only 10% in 1998.”

The total onshore area prospective for hydrocarbons exceeds 365 000 km2.

“Promoting exploration creates more opportunities for Territorians. It’s an exciting time to be in the Territory - great opportunities, great lifestyle”, he said.