The licence lies immediately to the north of the L1/L2 production licences and covers an area which has the potential for significant exploration prospectivity. It also contains the Mt Horner oil field which is currently producing some 75 barrels of oil per day.

This acquisition complements the recent purchase of the AWE Perth Basin assets and provides more complete coverage of the main exploration fairway to the north of L1/L2.

ARC has made a name for itself by combining with Origin Energy in the Perth Basin in the development of the Hovea and Eremia fields which have a combined total reserve of over between 15-20 million barrels. It also had a stake in the Cliff Head Oil discovery but has subsequently sold it.