2009-08-19-2007-06-01

Reserves: 12.7 MMBOE

Arc Energy Ltd., Perth, Australia, (Australia: ARQ) has adjusted its acquisition of Australian assets from Wandoo Petroleum Pty Ltd., a subsidiary of Mitsui & Co. Ltd., Tokyo, (Tokyo: 8031) following a rights exercise, and will now pay US$189.6 million. The company previously planned to acquire a 40% in the Wandoo Field, however Vermilion Oil & Gas Australia Pty Ltd., a subsidiary of Vermilion Energy Trust Calgary, (Toronto: VET-UN) is exercising its right of first refusal and will acquire the assets for US$125.3 million. The remaining assets include interest in the BassGas and Cliff Head fields. The value of the proved and probable reserves is US$14.93 per barrel of oil equivalent. Proved and probable reserves are 12.7 million barrels equivalent. Pro forma, Arc will have proved and probable reserves of 19.4 million barrels equivalent. Arc managing director Eric Streitberg says, "While we are disappointed not to be able to acquire the Wandoo oilfield interest, the fact that Vermilion chose to exercise their pre-emptive right vindicates our assessment of the value of the asset. We applied the same rigor to our assessment of the Cliff Head and BassGas assets and are confident that we are acquiring a suite of high quality assets at an attractive price." Arc will fund the acquisition with capital placement of up to A$100 million, a share purchase plan underwritten by Macquarie Bank for up to A$25 million, and a senior debt facility with BOS International for the balance.