The TP/15 permit lies adjacent to and immediately offshore from ARC's L1/L2 (Hovea) production licences in the North Perth Basin.

Arc will outlay $500,000 for the interest plus a production bonus if commercial production is achieved. The value of the interest is also considerably enhanced by the terms of an existing farmin arrangement with Voyager Energy which will provide a carry of the interest through the drilling and testing of the next exploration well drilled on the permit.

Bounty managing director Tom Fontaine, said the deal would enable his company to consolidate its interests in the region.

"The proceeds of the sale of the TP/15 interest to Arc will boost our cash position and allow Bounty to maintain its interests in its offshore Perth Basin permits through its upcoming 2D and 3D seismic programs," Fontaine said.

"This deal is one of several Bounty has recently concluded, nationally and internationally, whereby we have raised cash or farmed out interests to be free carried through significant work programs."

The TP/15 Joint Venture comprises of Hardman Oil & Gas 30%, AWE Oil (Perth Basin) 25%, Roc Oil (WA) 20% - operator, Westranch Holdings (a subsidiary of Norwest Energy NL) 10%, Arc Energy NL 5%, Voyager Energy 5%, Arc 5%.