The Perth-based company today said it had acquired the Blina oil field as well as surrounding exploration acreage from Golden Dynasty Resources for a consideration of $2.8 million and a 2% royalty.
The acquisition includes 100% of EP 129, L6, L8 and PL 7, 100% of the application for EP 7/05-6 and associated plant, equipment and infrastructure.
Arc said the purchase compliments its existing holdings in the Canning Basin and provides an “operational base, a foundation of production operation and additional exploration exposure”.
Managing director Eric Streitberg said the well-run production operation would give Arc excellent experience for when it brings onstream discoveries made in the forthcoming drilling program.
“Although reserves and production are currently modest with current production around 50 barrels per day, we will be looking closely at the wells to see if we can enhance production in the short term,” he said.
“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.”
He said the company would plug the exploration areas into its current regional review and most likely drill wells in the area in the coming dry season program.
The acquisition is subject to a number of conditions, including Arc’s completion of due diligence and Golden Dynasty shareholder approval.