In return for the surveys, Arc has initially earned a 5% stake in each of the EP 438 and EP 448 exploration permits.

But the Perth-based mid cap could earn up to 75% by spending $3 million on seismic and drilling in each permit.

The aeromagnetic work involved an 8000 line kilometre survey in EP 448 and a 3000km one in EP 438.

Empire will also increase its interests in these permits, after agreeing to acquire Maneroo Oil Company’s 60% stake in EP 438 and its 45% interest in EP 448.

Also in the Canning Basin, an Arc-led joint venture – also involving Empire – is counting down to next month’s drilling of the relatively high-risk Valentine-1 exploration well, which has the potential to yield up to 1 trillion cubic feet of gas plus 200 million barrels of oil.

A discovery of this size would transform all the companies involved, especially junior partners Empire, First Australian Resources, Pancontinental Petroleum and Emerald Oil & Gas.

But Arc admits that Valentine-1 is a long shot and an extensive, multi-well drilling program will probably be needed to crack the Canning.