The increase was primarily due to increased production from the Hovea and Eremia fields in the L1/L2 licenses, together with the impact of acquisitions made during the financial year, recent increase in oil prices and the disposal of a portion of these interests to Voyager Energy.

Additionally ARC had another record year of oil production with net oil and gas sales quantities increasing 217% and 56% respectively.

On the exploration front the Jingemia-4 development and appraisal well was drilled in April and intersected a 29m oil column while the Xyris-1 well intersected a significant gas column, which subsequently flowed at rates of up to 15.5 mmscfd. Following these wells, Apium-1 also intersected a gas column and tested at a rate of 1.9 mmscfd through a 20/64ths choke.

Xyris has since been approved by the L1/L2 Joint Venture for development and first gas is expected before the end of the calendar year with Apium expected to be developed immediately following.

The downside for the company during the recording period was the Tarantula-1 exploration well blow out in May, which slightly injured four workers and flowed uncontrolled gas at surface for almost a month before being successfully capped.

Arc’s most recent well, the 50% owned Centella-1 located 6.5km east of the Hovea production Facility, has also intercepted a 18.5m hydrocarbon column in the primary objective Dongara Sandstone, although Initial core analysis, wireline log analysis and wireline pressure data indicates that reservoir quality is comparatively poor.

The well will be cased for later production testing to determine the deliverability and commercial significance of the hydrocarbons.